Is Debt Prosperity or Trap?

 “What can be added to the happiness of a man who is in health, out of debt, and has a clear conscience?” 
Adam Smith

Grandfather Bhishma lay on the bed of arrows and was preaching the future king of Hastinapur about political science, economics and the duties of the king. He took a deep breath and told Yudhishthira "Fire, debt and enemies must be dealt with quickly and completely. If there is any balance left, they can continue to grow." The future king was listening with curiosity and was eager to learn about the complete knowledge from his grandsire. Each moment was important as the sun was moving from south to north.

Either we read the quote of the father of modern economics or both ancient great scholars are advising to avoid debt. But the whole of modern economics is based on the debt that advises the public to borrow money. The aggressive campaign of banks and financial institutions has been luring more and more loans. Even democratic governments and public banks continue to entice people to borrow, while claiming that they are welfare organizations. I have my own experience about borrowing money, reminiscent of Josh P. Wirthlin in my mind. He said "debt is a form of bondage. It is a financial termite".

People spend a lot of money on brand products, luxury and expensive items and adapt such life styles which compel to spend more. In fact, we impress the other people rather than feel comfortable or peaceful. Generally, middle class people buy home appliances or needs such  on monthly installments or payment plans that feel like comfortable shopping, but if we implement simple arithmetic and calculate the entire payment, then we get to know about the loss and actually reveal the intention of the financial institutions and banks. but if we apply simple arithmetic and calculate the entire payment, then we get a loss. And actually reveals its intention in financial institutions and banks. It is as if we buy the product before verifying the purchase affordability.  

In addition, modern economists classify debt into two distinct groups. The first is good debt and the second is bad debt. This difference can easily find out on the investopedia, , but high interest and long payment periods are always risky for the financial balance. In other words, we are playing with snakes which can bite during the financial disruption of life. Moreover, on gold loans or mortgages, lenders charge an interest rate of 28 to 35 percent every 90 days. Car loans and student loans double the money by creditors. Nowadays, sellers are ready to finance products easily or provide monthly installments or various payment plans/schemes. Credit cards and digital wallets play an important role in the loan market that attracts people for additional expenses. while Dan Ariely mentioned on his book (Dollar and sense) "Credit card are hardly the only financial instrument that embraces the pain-reducing, value-confusing effect of aggregation".

In essence, the debt acts like a python lying on the ground without any movement, such a state of the python showing it to be harmless and sluggish, but it implicates the victim and increases their bondage gradually . After a few minutes, the victims are unable to move and it breaks the entire bones of the body, then the python swallows victim alive, Hence the financial sages advice to plan the entire financial budget and adhere it with dedication and discipline. Finally, I quotes Gloria Steinem who says:

Rich people plan for four generations. Poor people plan for Saturday night.