Personal Finance: Build-up on six months’ salary to evade debt-crisis

Theda Muller

I doubt if we have seen consumer debt and delinquency in its vast magnitude as we see it today. Several individuals and business owners are under duress.

They are completely engulfed in emotional fear. When fear is the first emotion that hits their brain when they wake up every morning, making it impossible for them to function normally. Then they pass on that fear to anyone who comes in contact with them. Thus spreading more of the same negativity, strife, unhappiness, unpleasantness. They simply lack sheer will to live.

The debt does not have to be huge for some to resort to drastic measures. It often depends on the culture and their acceptance within this culture when they are face a debt-crisis, that forces them to take unwanted steps. They find it difficult to sustain themselves and help their loved ones who are dependent on them. Unfortunately, time too has an expiry date, i.e. when the debt situation becomes more than uncontrollable and there is no stopping the creditors’ advances anymore.

Then some may think of drastic measures as they now begin to live in shame and embarrassment; unable to cope with the daily misery of wading off creditor calls in the workplace where colleagues can hear, especially keeping those calls, notices and threats away from their superiors and HR departments, i.e. trying to avoid being terminated after multiple warning letters, etc.

They have no zest to live, no will to plod on and absolutely no light shining through this miserable existence as no help can be given if they hide it away from everyone and even if help is asked, it could be refused where very few debtors attempt to approach their creditors again, as they cannot handle the victimization. They exist day by day without any surplus funds to sustain themselves, simply being unable to buy basic necessities even. There are cases where they have had no money to replace worn out shoes and compromise on personal hygiene, too. Children’s education suffer and kids endure embarrassment of being terminated from school, etc. Maintaining one’s self-respect, dignity and pride becomes a task.

Anyone in this position would ask: “What is the point of existing and continuing in this way?”

It is only tolerance, humility and patience that will see debtors through such a situation. And, of course, supportive family and friends.

Debt can consume anyone at anytime because nobody is immune and it can happen in a flash. You might be doing well, when one fine day you lose your job and all goes wrong from there.

If you are not facing a debt-crisis at this time then my sincere advice is to start prepping your ‘nest egg’. Build up at least six months’ salary, so you have something to fall back on, in case something were to go amiss. When the going is good, nobody thinks of a bad situation that could occur.

[Note 1:  Theda Muller is a UAE-based author of two books: Embrace Financial Freedom Volume One: 10 Proven Ways To Release Debt And Emotional Fears In Today’s Economy, and Volume Two: Releasing Fear And Bouncing Back From A Debt Crisis. She also conducts webinars and workshops on debt recovery.]

[Note 2: The views expressed are the author’s own and do not reflect in any way, the views of Emirates 24|7. Readers are advised to carry out their own due diligence before taking any decision.]