24 October 2012

Day 124: Desperate Borrowing Behaviour

Whereas loans used to be mainly for big expenses, such as buying a car or renovating a house - personal finance research unit head, Bernadene de Clercq explains how South Africans have resorted to borrowing from credit providers to pay for food, transport, medical bills, school fees and electricity bills.

Prices of electricity and fuel have increased significantly over the past few years - which is a factor that was not taken into account at the time when loans were taken out. This resulted in a situation where people are now unable to pay back their debts - leaving them little choice but to create more debt in order to provide for themselves.

This is obviously a big problem because no-one can get out of a hole by digging the hole deeper. The situation is exacerbated by the fact that electricity prices are expected to continue rising with an annual increase of 16%, and this for the coming 5 years.

Inability to pay back debts will cause more and more to resort to crime to provide for themselves, which will further jeopardize social and political stability - while appropriate use of the word 'stability' is already questionable.

South Africa is on a dangerous roads - where investors are starting to shy away from investment opportunities, fearing that the economy and state will collapse. A cutting of investment spending in the South African economy will hamper economic growth and further aid its downfall - causing prices to drop, unemployment to grow and crime to rise more...

An Equal Money System will not allow money to determine who gets what, loans will not be necessary, no one will be a slave to debt and entering crime to provide for oneself will no longer come up in anyone's mind. We live in a messy, chaotic world where everything is continuously changing and threatened with instability and even collapse - we don't have to live in a world like this - we are choosing to through the simple thought that 'we can never change what is here'.

This one thought is our God as it dominates our lives and in the name of this one thought, we allow billions to suffer every day - while there is a way - a simple way - educate yourself at www.equalmoney.org and bring out your vote!
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