How People Fall Into Debt

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A national government’s money owed is known by the term national debt, and is different from money that state and local governments owe. Particularly in the US, municipals are bonds given out by the local and state governments. However, in the United Kingdom the loans or money owed by local municipalities are identified as county or corporation. Simple funds, also know as loans, are not calculated in the amount of total central government debt. In previous years, the United States believed that paper money was a percentage of the public debt, however in current times the paper money is referred to as a certain type of obligation. It is called an obligation because the paper money is not able to be paid with silver, gold, or any other definite objects of important significance. The government of a country has the responsibility for the public debt. Even though citizens have the obligation as taxpayers to pay funds for compensation of interest and principal, these individuals property cannot be attached to meet the requirement if the government is unsuccessful in doing so. On the same note, property owned by the government is not usually able to be taken to meet these obligations. The debt holders in a sovereign government can only take legal action in order to receive payment when the government allows them to. Everybody wants to buy a new car, a new house, have furniture and electrical appliances that are top of the line, travel, and do everything that money can provide. It is our consumption dream. However, people should have the notion that the life does not work in the idea of "I want", but more of in the idea of "I am able to". The main factors that contribute to a person falling into debt are failure of control of ones personal finance and loans in banks with interest. The absence of control in the budget is the first step to having problems with debt and

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