Debt—A Four Letter Word! *&$#!

Bankruptcy Lawyer

I recently wrote a blog article, “Do You Love or Hate Money?”, and this subject, Debt is also something In the modern world, we can’t barter to  get our food. We need to earn money, to buy enough goods, services, or housing to live a comfortable life.

But, many things in today’s world cost more than we can buy outright. So, if you want to buy a house or car, and don’t have all of the money, you can borrow money, to be paid back, with interest. In return, you get to   use and maintain the house or the car.  It’s really a great system, that, allows us to live pretty well.   Most people rely on debt to buy these “big ticket” things.  And, with the money coming from the lenders, it helps all kinds of businesses grow. We love debt, and need debt, because that helps us live.   Debt is a good thing.

When debt is used well, we love it.  But, if we become too dependent on Debt, it can be very stressful, and then we hate it.  By its very nature, debt means that you owe someone else for what you have.  So, when you have a mortgage on your house, or a car loan, you don’t really own that thing until it is paid off.  People understand that concept.  Many times, when I ask someone if they own a house, they say no.  Technically, that’s correct, if they have a mortgage, they don’t own the whole house.  But, with a mortgage and note (the loan), you do gain some part ownership in the house. That’s called equity.

So, when you are borrowing for your house or car,  you are  stretching your dollar, to buy more. But,  in  return, you need to be able to keep up with the payments.    Here’s where the “hate” part comes in.  If you lose a job, or have a slow time at work, you still have to make all of  those payments!  Yes, that can be difficult!  And, to add another problem, people may use credit cards to pay  for things, and if they don’t have enough money to pay it off, they are borrowing for that too!   It is very easy  to fall into that trap as well.  You become used to living a certain way, but if  your income decreases, you can fall behind in those payments too!   This is the “hate” part of debt.  If you don’t pay your mortgage, the bank will foreclose, and take it back, and, if you don’t make your car payments, the repo man will be out to get it in the middle of the night!

We definitely need debt, and when used well, we love it, but if we rely too much   on debt, we can hate it too!  Love it or hate it, it’s definitely a four-letter word!  Call  if you want to vent about your *!#% Debt!

Daniel  J.  Winter


Offices in  Chicago, Gurnee, Oak  Lawn, and Skokie, Illinois