President Donald Trump is already taking flack for rolling back regulations designed to keep Americans from overextending themselves when it comes to the use of credit. But this is not actually Trump’s fault; as Americans should learn to control themselves and be responsible for the money they borrow.
When Trump does things that are insane, such as start a trade war, we’ve called him out. But this time, some personal responsibility would go a long way. Instead of blaming Trump for daring to offer more freedom to the public, take initiative and understand what you are signing.
No one is putting a gun to the heads of Americans and forcing them to sign up for an adjustable interest rate, 40-year mortgage with no down payment.
The Hill recently reported that Trump’s “regulatory rollbacks” would boost the chances of another recession. Trump’s administration has been wiping out measures designed to prevent consumers from being ensnared in unsustainable debt and, at the same time, eliminating borrowers’ ability to seek court-ordered relief when they are.
Just because Trump removes some regulations doesn’t mean people will go out and overburden themselves with debt, and if they do, they should have to face the consequences. Personal responsibility would go far in ensuring we have a free society, however, it certainly seems like most Americans would simply rather have their decisions made for them and then blame others when they make a bad choice.
Lenders who created the more recent mess and reaped hundreds of billions of dollars in fees weren’t held accountable, leaving consumers and taxpayers to pay the consequences of loans that never should have been made. – The Hill.
But the real question is why the heck were people taking out loans they knew they couldn’t repay or that put them in financial hardship? You are not a victim if you sign on the line, take someone else’ money, and agree to repayment terms. This is exactly why most financial and wealth advisors tell people to avoid debt like the plaque.
The real truth that no one seems to want to hear, is that those who took out these loans signed on the line and voluntarily entered into a contract.
If they didn’t understand the contract, it’s their responsibility (a big scary word) to ask or seek clarity before the agreement is made and signed. That’s called personal responsibility for your actions. However, it’s lacking all over the globe, but particularly in the United States where people are always looking to blame others for their poor decisions that they themselves have made. “Blame the rich for my decision to go into debt and agree to bad terms!”
The debt crisis the U.S. has found itself in could very well cause another recession such as the one that started in 2008. This is exactly why personal wealth gurus such as Dave Ramsey and Future Money Trends‘ James Davis tell people to avoid debt if at all possible. Doing so will protect you when others start to default on their loans. You can’t default if you haven’t borrowed money. It also won’t matter what type of predatory loans exist if people aren’t borrowing that money.
Personal responsibility could help lead to more freedom. If people are not free to make bad decisions as well as good decisions, people are not free.