Tag Archives: payroll loan

Pride Goes Before a Financial Fall

Debt, , , , , , , ,

“Pride goes before destruction, a haughty spirit before a fall.” – Proverbs 16:18 (NIV)

 Act 1: Pride – a high opinion of your own importance

Jonathan, a 34-year-old accountant, makes an average income and lives in an affordable rented one-bedroom midtown flat. He inherited a 2001 Toyota from his father, which performs reliably without needing major repairs. However, despite his reasonably comfortable existence, Jonathan is very dissatisfied with his present position.

Many of Jonathan’s former schoolmates have advanced rapidly up the corporate ladder, and now hold major positions in banking and product distribution companies. As the valedictorian for his graduating year at high school, Jonathan is painfully aware that most of his high-income colleagues were less-than-stellar achievers in school.

Every time they get together, Jonathan compares himself with his friends and thinks that he comes up short in every area. As they discuss the latest high-tech features of their high-end SUVs and share details of their recent jaunts to luxury resorts, he resents the fact that his income does not allow him to live the lifestyle that he thinks he really deserves. Continue reading Pride Goes Before a Financial Fall →

Breaking Free of Debt

Debt, , , , ,

“After reading your article about bad debt last week, I realized that I’m trapped in a cycle of debt. I have been taking our loans over the past six years. Each time I clear off an old loan, I borrow even more money which typically is used to purchase some unnecessary household item. I now owe about three times what I did when I originally started borrowing. Please help me to break free of this debt!”

The current growth in consumer debt has its pros and cons. On one hand, it’s great for the economy, as profits of the lending agencies and retailers increase when people’s appetite for debt grows. However, on the other hand, there are more reports of consumers who are suffering under a debt burden that they find hard to bear.

As we have been discussing recently, there’s ‘good’ debt and ‘bad’ debt. Debts that are financially beneficial are those that can provide you with some monetary advantage in the future; while borrowing to sustain a lifestyle that’s beyond your means will definitely lead to financial challenges.

So if you’re stuck in a cycle of spending and debt, what can you do to break free? Follow the steps below to start your journey towards freedom from debt. Continue reading Breaking Free of Debt →

Bad Debt

Debt, , , ,

“I work in the payroll department of a large organization, and I pay out millions of dollars each month to different loan companies. I know that some of these lending agencies charge exorbitant interest rates. My concern is that many of the employees are taking home little and nothing from their pay cheques. How can we get them to realize the dangers of too much debt?”

Consumer debt is on the increase in Jamaica today. The rapid demand for debt could suggest that we’re not able to meet our needs from our income, so we’re forced to borrow to make ends meet. Or it could be an indicator that many people are not willing to defer their desires until they actually earn enough to fulfill them.

With a high appetite for debt comes a resultant growth in alternative lending agencies. ‘Rapid Financing’, ‘Same-Day Loans’, ‘Quick Advance’, declare the advertisements from agencies that offer a fast track loan service. Reports from traditional credit facilities also point to the increase in credit card usage and loan portfolios.

It seems that Jamaica is now ‘debt-crazy’.

Continue reading Bad Debt →