For the first official post on the Debt Free Community. Let’s cover what exactly is Debt so you’ll have a firm grasp on how it relates to you personally.
What is debt
Debt, in relation to this website here, is money owned to a lender. This is generally a bank, a credit union or any other type of financial institution. It’s a deferred payment, money that is owed in the future.
Banks like this as the interest, earns them money. Plus, the lending costs are very minimal, and debtors (you) are very likely to repay the money loaned out.
Debtors and banks have gone back hundreds of years. Thousands of years even. It’s just that today, financial institutions are more sophisticated. The more aware of how to find the right applicants, assess their repayment ability and chase them when the monthly repayments or full balance isn’t repaid.
The responsibility for some people can be easy to handle. For others, it’s much harder. It’s an individual situation, and everyone’s situation is different. That’s why a tailored approach towards getting out of arrears is necessary.
Debts can move hands. That is, if you’re not paying your monthly minimum repayments, the full balance can be sold to a collection agency. So if your bank isn’t calling and someone else is, your debt is now with the next crew.
One thing is for real: debt is here to stay. In our world today, we simply couldn’t live without this at all. The bankers do own the world. A rigged game this definitely is.
But there is a way out of these financial challenges, and we’ll help you as much as we can. Simply use this website to your advantage. It’s what it is here for.
I hope this post has clarified what debt is. How you tackle your debt is up to you. We would recommend using the services here. Just for you, this website can be helpful.
Likewise, our #1 recommendation for Australians is always the National Debt Helpline. You can contact them at: 1800 007 007