Debt Escape Strategy

 The economy is currently facing turbulent times, and many people are struggling.

I am currently reading a book titled In the Next Five Years, Only Those Without Debt Will Survive.

The term "credit" is one coined by the financial industry. A high credit score means a customer is highly profitable. Therefore, it can be said that "credit" and "debt" are essentially interchangeable terms. The credit cards we use in our daily lives can also be called debt cards. Using a credit card essentially means using debt based on credit, and if you're utilizing revolving services, you're essentially taking out a high-interest loan.

No one embraces debt out of love. If a family member falls seriously ill, a parent's business encounters difficulties, or multiple issues converge, the burden of debt can extend to the children. Many families find themselves in such situations, overwhelmed by the weight of debt and facing threats to their survival.

The worst-case scenario is when the entire family is burdened with debt and facing economic crisis.

This book presents two basic strategies for escaping debt:

1. Consolidate the family's debts under one person.
2. Combine scattered debts into a single loan.

If every family member's credit is compromised, it becomes nearly impossible to resolve the issue through economic activity. Therefore, it's essential to concentrate the debt under one person, enabling the others to maintain their economic capacity.

When calculating credit scores, the number of loans is more significant than the loan amount. Thus, efforts should be made to consolidate multiple debts into one. This can reduce interest burdens and shorten the time required to escape debt.

Thinking about the desperation and struggle of those in such situations is heart-wrenching. However, if avoiding it is impossible, we must unite and overcome it together. I support you!

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