Are You Spending More Than You can Afford?

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  "Another way to solve the traffic problems of this country is to pass a law that only paid-for cars be allowed to use the highways."  ~Will Rogers

Probably you are wondering who Rogers is. His name can be placed next to any one of the famous people that you have seen on TV over the last couple of years. Maybe you are even thinking he has starred in one of the movies that you have watched. Most Wills’ I know always carry a certain sense of geniality, charisma and a surpass share of originality. He is certainly no exception.

Think of the likes of Will Smith. We have come to know Smith as the vigorous, garrulous bragger machine who doesn’t know when to put a lid on it. From the early 1990s show ‘Fresh Prince of Bel Air’, to most recent movies like ‘Hitch’ and ‘Men in Black’, Smith will have you hanging on his lips. He is good at that, and his gift oozes out of all the pores in his well-being and we all love him for that.

Will Roger’s work wouldn’t really relate much to our contemporary cluster of today’s jejunity. Most of us wouldn’t know about him, but ask a few ‘ol’ chaps’ who lived through the 1920s and 30s; they probably know his work, as he was one of the most renowned celebrities of that time and was once Hollywood’s top-paid movie stars.

I couldn’t help but wonder, during a Business Reporting discussion today, why debt has become the prime adversary in every segment or plane of our lives. It haunts even the multi-billion dollar companies that are boasting double or tripled profit margins over the years. It doesn’t discriminate, whether you filthy rich to the core or simply surviving from the modest soupcons that plummet from the ‘high tables’ of those above you.

What society is facing is a phase where people indulge themselves in more spending than they can sustain these activities of expenditure. Simplified, it is just overspending, were one believes they can squander more than they can afford.  Buying power transforms year after year, and at times we try so hard to keep up with the lifestyles that we are used to, not taking into consideration the income that we’re receiving, whether it affords us the chance to continue with such behaviour, or we simply have to do away with other activities.

This topic surely can be argued over and over. One might say they can still afford to do what they used to do two years back. Probably their shopping manner doesn’t need to change; only the types of goods that they buy need adjustments. But what if you still purchase the same amount of goods you used to get two years ago, having only swapped brands and nothing more? 

Surely the world is spending a lot. Developing countries find themselves on the smarmy side of economic affairs, were they are embattled with the task of repaying debt that they owe to the international monetary structures and the Elite Giants, at the same time fervently racing against time in a bid to maximise ultimate economic growth in the face of global recession and augmentation of the industrial sector and that of the ICTs.

But what stood out from this discussion, is the fact that Debt Counselling bodies have been setup to help all those who find themselves overwhelmed by this ‘evil’, and bitterly swimming in the hot soup that credit providers are always brewing at the back of their lengthened, and intricate contract forms.

Debt Counsellors supposedly take over your financial affairs, and stand on your part to help fight off the credit providers who, at this point, are breathing down your neck, you’ll probably have to be Chuck Norris not feel the heat. They are supposed to help protect your assets and ward off those creditors already jumping onto the wagon to the house of ‘legal action’ against a consumer. But I couldn’t help but laugh when I heard the amount of money these debt counsellors charge. 

I wasn’t laughing because of the amount they are asking for, but for the mere fact that they are charging somebody who no longer affords to pay for his own debt. Where is the sense in all this? A consumer is already plastered with debt, and he or she is trying all tricks in the book to evade credit providers, then you go on to ask them to pay a fee for your services. Needless to say the criterion also requires a salary for a consumer to be taken under the debt counsellor’s wing. What makes you think they will pay you in all honesty? Probably they are borrowing that money from other parties again, just so you can help solve their issue. But is it being solved? Isn’t the debt simply exchanging heads? What if their situation is being exacerbated? The debt simply remains stagnant, with the only alternative being a way to help these parties in a manner that will see them not spend more, on top of the debt that they are already in.

Well, maybe governments have to chip in, in situations like these. Solution can never be pulled out of the hat but I believe maybe something can be done so as to alert people of dangers of overspending and debt. Maybe we need to be educated a bit more in terms of how these things operate, especially advising people about credit provider contracts, spending and how to balance these.

Well, I guess Will Rogers had surely seen where the problem was. We surely rely more on credit and less on what we really have in hand. Maybe it is the world setup, and it won’t change anytime soon, considering Rogers noted this back in the 1930s. But I’m sure we can always minimise the severity of the bite of debt by employing more discipline to the way we spend and adopting more suitable and favourable monetary management tactics.

Till next time, don’t ‘shop’ till you ‘DROP’!!!