Learning from debtors’ mistakes Wednesday, 19 January 2011 02:00

There may be some truth in the words of debtors who claim that it is the State who encouraged them to enter the world of stocks and unbelievable profits, and transported them from one material state to another in the blink of an eye, making them get used to and feel safe with risk-taking. As such, some debtors say that they did not protect themselves from the advances and interest rates of banks and were vulnerable to the presence of environmental factors that can cause changes in circumstances and conditions.

The financial crisis suddenly displaced a quarter of the world who were left unemployed and whose services were dispensed of. Large companies collapsed even before small and medium enterprises, banks and factories declared bankruptcy, houses were auctioned off, and there was a painful economic earthquake with prolonged effects on some of the citizens who relied heavily on trading stocks and did not have a safety net guarding against future volatility.

Be the reasons whatever they may be, as it is not our role to judge others but to learn from our mistakes. Many of the debtors are hanging on to the hope that the State will help them in any way possible, and I join in their calls as the need for intervention is dire because these are exceptional circumstances. People have been heavily impacted and are still reeling from the trauma that took hold of them - but that question is, have they learned the lesson? Have the people surrounding them benefited from the repercussions of the crisis that has beset society? Have they absorbed the message?

There are many people who have millions but live moderately and closer to simplicity, and there are those whose salaries can hardly last an entire month but spend lavishly and take on debts to live luxuriously. It is to the extent that when the two groups are out next to one another, a bystander would be led to believe that the first is the poor group and the latter is the wealthy. This depends on internal desires people wish to satisfy. While one is content with a moderate lifestyle, the other may be looking for much more and is not satisfied with they have, and is influenced by advertisements and changing consumer trends to the point that they guide their lives. Unfortunately, these habits are then passed down to children who are brought up in an excessive environment that can find no harm in eating, wearing, driving, and travelling the world through debts and loans.

There is a principle that whoever does not accept to take on a single riyal of debt – and this is not an exaggeration – will not become a hostage of debts or one day become paralyzed by loans. This is not to say that no one should borrow any money at all as that is unreasonable. However, loans should only be taken up for necessary things such as funding an education, whilst ensuring a reliable, stable method of paying those loans back. Betting on the stock exchange and depending on luck and chance, on the other hand, has resulted in the damage that we see today.

Those who are dissatisfied with and do not accept taking loans but are forced to out of need wait for the day to lift off the debt and break their shackles to it. They sacrifice their lifestyles to pay off their debts and struggle to shorten the time of repaying the loans as much as possible. Such a person will live within their economic means because they are accustomed to a non-leveraged position.

Why does our society exaggerate in estimating the values of cleverness and luck in the stock market just to seize more and more without ever feeling satisfied? Why do we resort to banks and take on larger and larger loans beyond our ability? If we are gambling on a project, why not do so within the limits of our concrete capacity? What has happened is a fabrication where people are borrowing beyond their means and entrapping themselves with overwhelming debts and threats of bankruptcy. The state isn’t going to support them then, and banks have disowned them - the same banks who lured people in with legendary profits.

There is no time for blame but for learning that contentment should be treasured and is a legacy that can be passed on through the generations. It is possible for a family to live well within modest means and enjoy its limited income if it desires to. Another family could have ten folds the financial income but never be content because it is impossible to cover even a quarter of the family’s exorbitant requirements.

Do you agree with me that a meal of oven-baked bread, homemade in the family kitchen is tastier than a croissant or dry French bread served in a restaurant or major hotel, which costs much more than an ordinary family can pay? Let alone multiple meals in any of those restaurants and falsely flattering hotels that deplete the pockets and minds of the people?

What is the most beautiful clothing? One’s individual choice, which fits his/her personality in terms of detail, quality, and price? Or one that is littered with the name of a famous brand or luxury store, ill fitting on the men and revealing on the women, short on the hem line and low on the waists in a way that is unflattering at home let alone in public? Do people buy whatever is of the highest price just to follow trends?

I have seen luxury cars driven by people who are dressed in a way that would make one assume they were aristocracy - but they park them in front of the rented houses where they live that resemble labourers residences in demolished, dilapidated neighbourhoods. There is no shame in poverty but in evading it and claiming the opposite status through debt. No shame in the person who is simple and happy, proud, and satisfied with what he/she can provide. But there is shame in claiming to be someone else, feigning a different status, and hating one’s true identify and trying to hide it. If someone does not respect themselves, how do they expect people to respect them or believe them if they are not honest with themselves?

In the world of accessories alone, it is impossible for the naked eye to differentiate between the real and the fake. Funny how when a wealthy woman wears any trinket, on-lookers believe that it is a valuable gem for two reasons: 1) because she is wealthy and 2) because it is nearly impossible to differentiate between the valuable and invaluable! What is happening is that people are spending thousands just to buy a famous brand name without realizing that the quality and composition may not bear any distinction. The mentality under these circumstances is flawed where people buy material things in order to buy others’ admiration. Would you value a man based on his car or watch? Or a woman based on her handbag and shoes? I do not think so. Most of us judge a person based on his/her character and lose interest when in the presence of arrogance and artificiality.

Children are easily molded and pick up on the behaviors and words surrounding them. When they see their parents eating and wearing things that they got from debt, it is no surprise that they do the same things once they grow up.

God blesses things as long as they are simple and met with satisfaction. A wedding ceremony, for example, is more joyous and delightful when it is filled with love and affection than one with fake appearances and over-the-top formalities.

May debtors become free of the agony, humiliation, and distraction of debt. Good things come to those who wait and perhaps the responsible parties will pay attention to and develop solutions for lifting debtors out of this crisis because it came upon them without warning and was an unparalleled shock.

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