The term slave is often tossed around when someone feels like they are owned by someone else. However, there is a modern-day form of indentured servitude that does not offer transportation to another country, but instead to a belief of a new life. It has become so prolific that people are paying interest on a hamburger they ate months before, and the cell phone they talk on to their family and friends. Every day that goes by they are charged more money for their prior buying decisions using someone else’s money. With as harmless as this appears, because just as sugar it has been socially acceptable for more than two generations, it has become a disease that controls the people affected by it.
What is credit bondage?
Slavery by definition is specific that the slave is seen as property and is abused. Indentured servitude or bondage normally reflects a form of slavery based on an expense the owner has previously paid on behalf of the servant/slave. However, journalists have begun to uncover what is called credit bondage. What makes it so interesting is that it is not socially acceptable, but it’s encouraged by family members, teachers, employers, mentors, and other social influences. But, what is the result of this practice?
Most people will accept the fact that they will not own their own house for at least a 20-30 years or longer when they take a mortgage. They understand the car they drive will not be there’s for five years, right about the time the car is out of date, and worth about 10% of what they paid for it. However, what many people don’t realize, understand or internalize, is that if they don’t make the payments, the credit company has the right to and will make a demand for payment.
How are debts created?
This may frighten many people, but it’s a very simple story. When someone works, they can build a history of good repayment of money they borrow. The easiest and most common way to borrow money is a credit card. It’s really simple, the user of the card simply slides a piece of plastic into the machine and they get what they want. Many people don’t even process that there is a cash transaction present. It almost numbs them to the actual cost of goods purchased.
Once the credit card is used, every month the user must pay a minimum amount called a minimum payment. From my understanding due to recent regulations, the minimum payment must be more than the amount of interest charged for the month. However, it still leaves a majority of the debt its place to get interest charged the next month. The debt get’s larger and larger, until one day…
How people are controlled by debt:
It’s a natural course of business if you lend someone money you wish to get paid at the time it was agreed you would be paid. Who wouldn’t? However, many people don’t see it that way. They perceive the corporation as having enough money they won’t miss it. It almost becomes a gift in their mind. Until the collections begin.
If you don’t work (for yourself, or another entity) you don’t get paid. It’s not hard math, I promise. Therefore if you don’t work, you don’t pay your bills. Your credit cards will be shut off, along with your electric and phone. You won’t have money to eat and eventually you won’t have a place to live. This lifestyle is not only acceptable but encouraged by friends and family.
How creditors abuse their customers:
I don’t think I’ve ever seen so much as a thank you card from a debt collector, but as soon as I don’t make a payment there on my doorstep to get money. Debt collectors call several times a day, several days a week, and without regard to the laws or consequences. I’ve personally experienced being yelled at by collectors and told all kinds of vicious non-truths. The psychological abuse and stress are no different then the way slaves and indentured servants were treated in the past. The only way to get it to stop is bankruptcy or to die. I’m not a fan of bankruptcy, but sometimes there is no better way than to ask the courts to remove your debts.
At the end of the day, my recommendation is too simply to not allow yourself to become engulfed by debt. I understand that it’s hard, but the consequences of devaluing your income and the abuse by debt collectors. You can use credit to give yourself an instant raise, but not buying things you want before you can afford to buy them for cash. You can save hours of abuse by debt collectors, should you lose your income, for even a couple of weeks by avoiding debt. There are so many advantages not to use credit cards except to pay bills electronically and to pay them back immediately. So why not reduce your debt and get your freedom back.
– J –