In our current society, debts are a subject of everyday life. Some years ago, it was not very common for people to have to deal with debts and credits to pay for stuff. In fact, loans were very unusual. Nobody was actually worrying about having to pay someone else what they owed. However, as times went by, people were more attracted to pay for things they couldn’t actually afford. The best solution to do this was getting into debt.
People started loaning money from one another and this seemed like a very good business venture for banks. Therefore, banks started loaning great amounts of cash. Little by little, they noticed that people started having problems paying them, and then they took advantage of this and added interests, guarantees, etc. In less time than anybody thought, banks were loaning and receiving millions of pounds per month. People felt so good about being able to use the bank’s money and then giving it back.
However, as the program had just started, people were relatively more careful with their debts. No one wanted to abuse the system as it was too attractive. Today, people are so used to loans and credit cards that they are not afraid of using them freely. People tend to just slide and slide their credit cards over and over again hoping that at the end of the month there will be enough money to pay for that money. This is the main reason why banks keep getting richer. The only way to cure debts is by avoiding them altogether!