Watch this video as I give my insights on how to deal with the problem.
This is a Q&A session I record every week (Except of the weekly live one on Instagram) about financial freedom and personal finance for entrepreneurs Click to watch this video and add your own question in the comments.
I might feature you in my next video.
Table of Contents
Here is the full text of the video:
Hello everybody and welcome to another Q&A session about financial freedom, personal finance for entrepreneurs.
And today I have a question from U_WADHAWAN. That’s his username – I don’t have his full name and he asked me this
What are some of the reasons people accumulate mass amount of debt and what can one do to avoid this?
So, the reason for that U_WADHAWAN is because we are..
I mean people are encouraged to take that debt where advertise to do this and we’re encouraged to consume even if we don’t have the money for this.
So we take another loan and another loan to fund that consumption. And we’re out of money at the bank we can take another loan. And again and this is getting larger and larger snowball that obviously get us to a huge amounts of debts. Now,
HOW CAN YOU AVOID THAT?
So, Stop Listening. That’s the basic thing. Stop taking those loans and start thinking about the things that you wanna buy.
Do you really need this? Or you want this?
If you want this and you can’t buy this, it’s a bad thing to take a loan that should be fund this. Not that a loan and debt are bad. Sometimes they are good if you wanna invest in something. That’s a whole different story. But for consumption. Bad idea.
Thank you very much. Add your comments and question down here.
And see you next time.