Until the economic crisis started, people were taking out debts left right and centre – whereas the old school philosophy used to be to save until you could afford something, our generation was remarkable for its care-free attitude to debt and the willingness to take out loans to buy things that we wanted but could not really afford.
Boy did we spend! We took out loans for everything from necessary things such as finance and loans for dental care and other health related spends, to things that were not so vital such as new cars, second homes and even cosmetic surgery. We took out loans with hardly a second thought on how we would pay them back.
It is hardly a wonder that our financial world came crashing down around our ears so spectacularly and one sad but inevitable result was that many people did lose their homes as they could not afford the repayments.
As a society we need to get back into the more cautious way of thinking and actually planning our finances rather than letting whims and consumer pressure dictate our spending habits.
It is easier said than done, but if the economic crash is going to serve any purpose, it has to teach us that basic lesson. Spend what you have on what you really do need!
