The Law of Attraction and What the Bank Didn’t Say About Wealth Creation “Spend, borrow; borrow, spend,” the bankers urged. “No credit, slow credit, bad credit, no problem. If you own your home, we have a loan for you. No equity needed.”
We see it every day, a new way to lend money, extend your credit card limits or use the equity in your home and the great things you can buy from this new found wealth. Creating Wealth without working for it, on a scale never seen before. Where little consideration has been given to the impact of this added credit and its reimbursement. Because greed is good, take it now, pay later, it was programmed for us by the media at all levels. Personal debt has now become a major problem and any economic downturn and associated job cuts will have direct consequences, let alone a round of interest rate hikes.
Not surprisingly, bankruptcies have risen to levels 10 times higher than several decades ago. In a crisis that is on a scale never before seen in the world of finance. The computer model that said there was little risk was found to have holes wide enough for trucks to pass through. It is moving out of the United States and into areas of finance that have never been affected before. With foreclosure disasters happening every day, pocket credit providers are now reaping what they have sown. The debt levels of some banks are causing capital runs, forcing the government to intervene with public money to curb cash flows.
Gary Eldred PhD is a Professor of Real Estate at Trump University, he put it this way.
Weakness of will and financial discipline
- By taking the sales approach, bankers knew that millions of people would seize the opportunity to spend and borrow, and then think of the destructive consequences afterward.
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Because let’s face the facts. Home equity loans expire on their ability to build wealth. If you do use it, use it only for productive investments that offer low risk for good returns. (As the old advice goes: “Never made with corn seeds”). The data on home equity loans overwhelmingly shows that borrowers most often spend the money they borrow on consumption, including ill-considered home improvements or extended trips abroad.
- What about consolidating your bills or paying off high interest rate credit card balances? Once again, caution says no. Instead of paying less interest, this approach often leads to even more debt. Why? Because borrowers who wrap their credit card balances and other bills in home equity loans (or refinances) temporarily minimize the pain of debt. However, with a longer term and lower payment, debt incurs higher long-term costs. Worse yet, many borrowers bring their credit card balances back up to where they were before.
“Thank God the house went up $10,000 in value last year,” they think. But meanwhile, the destruction of wealth continues.
Don’t allow yourself to get into this situation, use the powers provided by the Universal Laws and the Law of Attraction to build your own wealth creation so you don’t have to borrow beyond your ability to pay. Build your own goals, don’t let others build your goals for you, including you in their goals where what they have in store for you is little and more likely “but a life living with debt”.