Money Matters: It’s the principle.

The American Dream is not as attainable as it used to be. In fact, the American Dream is now sold separately according to the social caste system. The obstacles that one must traverse in order to see hard work work in one’s favor should be deemed criminal. The gimmick is now to advertise yourself for product recognition and to supplement a life with low to median income that is not able to cover life’s necessities and wants even for the average single person. In the late 1980’s throughout the 90’s it was a easier feat because human contact was still a must and word of mouth could keep up with the times. Rent was affordable then, government services were able to be accessed with a simple conversation and walk to a building with a main address; even jobs were easily attained as you could just walk up to a building ask for the supervisor and manager on a property with your resumè in hand and a sharp outfit and you would pitch a perfect 5-10 minute skill set and grow into a career. Now it’s automated expressive services and being prompted through loopholes just to get to a human voice. Let’s not forget everything now requires paperwork and weeks upon weeks of review.

But what no longer takes up time is debt.

Credit cards have been attacking us since the age of 18. The enticing promise of having a limit of $200 or more dollars which we don’t have right now. Sounds like an easy fix if we spend what we don’t have and pay it back as soon as we land a job…the crazy part is the limit increases each time we afford to cover the lightly suggested minimum close to closing a remaining balance.

College is one of those wormholes where you will take lump sums out to cover the cost of room, board, books, and classes just to graduate and hope to land a decent figure job to cover real life lessons.

So what is the principal in terms of debt?

Principal is the main borrowed amount and interest is the percents accrued on top of the amount borrowed in order to receive that principal amount. This is where highway robbery takes place. This is also where we get caught up in terms of minimal payments as well. Now depending on your loan, credit card, and or mortgage, that percentage of interest is where debt spreads vastly and rapidly if you’re contributing the bear minimum. But I wish school warned us about this at a time when we needed it most. Even at this age a friendly reminder doesn’t hurt.

I asked a question via Facebook in regards to one utilizing their college degree after obtaining it or just having it for the years. Some replied yes, others replied not really, and the general census stated that without the degree the additional dollars on a check would not be possible. And that is so true, many of the jobs we’ve obtained wouldn’t be possible without a college degree; should a piece of paper have such an expense and value over our quality of life? If the principal is needed for a better life to begin with.

Things to take with you for future reference:

• Go to a free financial seminar and stock up on knowledge about loans, grants, and other facets to attain money. Keep informed.
• If you do decide to borrow any money, be mindful of the interest percentage. Research! Research! Research!

• Don’t borrow what you can’t handle. Remember debt spreads like a virus.
• In debt right now, what’s the minimum payment add $50.00 extra to that. Try to knock it down and out.
• If you can find an alternative to meet your needs, do so. Side hustle, use your creativity and talent!
• If you don’t think you’re college ready, go the vocational route to give you feasible work and a different perspective.
• If you have a credit card and your limit has been extended. Call that credit card company to keep it to a certain minimum to avoid that temptation.
• Public Student Loan Forgiveness- look into it!

He who is quick to borrow, is slow to pay- German proverb.