There are some investment counselors who urge speculative credit practices described as “leverage,” “credit wealth,” and “borrow yourself rich.” Such practices may work successfully for some, but at best they succeed only for a time. An economic reversal always seems to come, and many who have followed such practices find themselves in financial ruin and their lives in shambles.
Owning a home free of debt is an important goal of provident living, although it may not be a realistic possibility for some. A mortgage on a home leaves a family unprotected against severe financial storms. Homes that are free and clear of mortgages and liens cannot be foreclosed on. When there are good financial times, it is the most opportune time to retire our debts and pay installments in advance. It is a truth that “the borrower is servant to the lender.”
When you owe people money, you don't get to decide what to do tomorrow.
Traditional loans generally have protective covenants built into the contract that protect the lender, including financial maintenance tests that measure the debt-service capabilities of the borrower. The issuance of covenant-lite loans means that debt is being issued to borrowers with less restrictions on collateral, payment terms, and level of income. Covenant-lite loans place less restrictions on the borrower in terms of requiring collateral and a certain level of income.
When we go into debt, we give away some of our precious, priceless agency and place ourselves in self-imposed servitude. We obligate our time, energy, and means to repay what we have borrowed - resources that could have been used to help ourselves, our families, and others...
The bad news is that businesses will soon find themselves waking up to a painful debt hangover that will constrain their choices in the years ahead.
We may consider each generation as a distinct nation, with a right, by the will of its majority, to bind themselves, but none to bind the succeeding generation, more than the inhabitants of another country.
I sincerely believe . . . that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.
You cannot establish security on borrowed money.
You cannot keep out of trouble by spending more than your income.
Poverty is hard, but debt is horrible.
He is rich who owes nothing.
Do not accustom yourself to consider debt only as an inconvenience; you will find it a calamity.
Debt is the worst poverty.
There are some investment counselors who urge speculative credit practices described as “leverage,” “credit wealth,” and “borrow yourself rich.” Such practices may work successfully for some, but at best they succeed only for a time. An economic reversal always seems to come, and many who have followed such practices find themselves in financial ruin and their lives in shambles.
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