An Age of Magic

Is borrowing money too easy these days?

I am of the opinion that it definately is. You only have to read the newspapers nowadays and never a day passes without some article referring to the record numbers of people declaring bankruptcy, losing their homes, defaulting on their mortgages. And what is frightening is that these people who are losing all they own are getting younger. No real suprise though as the borrowing mentality is ingrained in young people before they even leave school these days.

Have you seen how many teenagers own mobile phones? here’s an easier question, find one who doesn’t have one! and who pays the phone bill?….usually Mum and Dad but it has been known for teens to secure phone contracts for themselves and run up enormous phone bills. Another example - students. Students have loans pushed at them from every direction even before graduating. Given that these are often personal loans in order to pay for their studies they still start their working lives in serious debt.

The problem facing many families is trend toward secured loans given that they own a home, car and other assets. These situations work out fine until unemployment strikes or illness, or a new baby arrives. It is very easy to fall behind. Perhaps a return to the days, not too long ago, when you really had to prove you could repay what you wished to borrow is the way to stem this problem. It may not be of too much assistance to those already in financial straits, but it just may prevent the next generation from falling into the same trap.

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