Debt: The state of owing something especially money; an obligation to pay or render service; money owed to another party; a legal obligation, written or oral; an obligation resulting from the borrowing of money; or just simply MONEY that is owed.
Yes, dear reader… this is all about money, how things can go “bad” when you borrow it, and how to prevent yourself from making things go from bad to worse between you and your debtor.
It is simple enough, and needs no complicated explanation that debt arises when one is not capable of paying back what they have borrowed. Let us imagine a hypothetical situation, where you have borrowed a large sum of money from your brother, promising to pay him back in a month’s time! A month goes by, but you are in no position to even treat your brother to coffee let alone return his money. Finally when your brother does show up to collect his dues, you brush it off casually considering the fact he is “family”. But, take a deep breath, rethink the whole situation once again, and you will find that money knows no relations; it’s an independent and brutally strong entity that rises above everything else. And when your own brother returns home empty handed, all that you will have achieved is a place in his “bad-books”; and a lifetime label of being incompetent for future monitory transactions.
This, my dear friend is called Bad Debt! How you fell into its trap is really simple. It’s one of the basic human behaviors; carelessness and lack of fore-thought! When we get/acquire or borrow money, we often tend to forget that the sum is to be returned, and usually indulge ourselves in a spending spree! Finally when we do think about investments, we are left with a measly amount! This is what results in a bad debt. Well, here’s a tip, investments require consistent and generous supply of wealth to generate profit!! And the least we could do; other than avoiding the borrowing of money; is figuring out beforehand a foolproof method of paying it back.
Getting back to the topic of discussion; Debt! A good debt is a debt that is taken care of in timely and organized fashion, given top priority and paid of on the promised date. Although it sounds simple, in reality, it takes a lot of careful calculation, calculated gambles, and a strong will power.
Debts are a liability and an obligation and can very easily destroy lives and businesses. It is even easier to fall into this deadly trap as it always seems the easiest and the only way out. My advice to the readers is that, never borrow unless it is the absolute last option you have left, and in case you do end up borrowing; devise an organized time schedule and action plan to successfully return the amount and prove yourself worthy of commitments and financial stability.
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