Is Debt a Bad Thing?

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“Debt Is A Bad Thing” The dictionary definition of debt is something that is owed or that one is bound to pay to another or a liberty or obligation to pay or render something. For years many people have been talking about debt and now, recently, debt is one of the most talked about subjects in the media with economies crashing, banks going bankrupt and our own country in one of the most awful recessions that we have ever been hit by. So, this leads us to the question; is debt really a bad thing? Some people think debt is a bad thing. One of the reasons they think this is because debts can spiral out of control easily. For example a company named Payday Loans UK charges 1737% APR! So, say you borrowed £100 from Payday Loans UK over a month’s period. The interest they charge you is 1737%, you will end up paying £14475 back in just one month! (£100 * 1737% = £173700 / 12 = £14475) This is extortionate! However, this is not the only company with crazy APR; other companies include: Wage Day Advance (383.5%), Quick Quid (1734%), E payday (1284%) and many more. Just think how easily this amount of debt could get out of control and you may not even be able to afford the basics, before you know it you’re starving, homeless and living off benefits. When we played the car game in maths where we had a character to buy a car and insurance for, I saw how easily debts could get out of control – by the end of the game we were in -£1420 worth of debt, purely because of bad luck! Another reason why people think debt is a bad thing is because if you do not pay it back bad things happen. Bad things like having court orders, loan sharks coming to beat you up, bankruptcy, debt collectors coming around and possibly the most emotionally harming one, repossession. Repossession is when a bank or another money lending company repossess items of immense value from somebody who has not paid

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