There are two classes of debts, and these are so different in nature that they deserve to be  here described, as follows:

  1. There are debts incurred for luxuries which become a dead loss.
  2. There are debts incurred in the course of professional or business trading which represent service or merchandise that can be converted back into assets.

The first class of debts is the one to be avoided.

The second class may be indulged in, providing the one incurring the debts uses judgment and does not go beyond the bounds of reasonable limitation.

The moment one buys beyond his limitations he enters the realm of speculation, and speculation swallows more of its victims than it enriches.

Practically all people who live beyond their means are tempted to speculate with the hope that they may recoup, at a single turn of the wheel of fortune, so to speak, their entire indebtedness.

The wheel generally stops at the wrong place and, far from finding themselves out of debt, such people as indulge in speculation are bound more closely as slaves of debt.

The Fear of Poverty breaks down the will-power of its victims, and they then find themselves unable to restore their lost fortunes, and, what is still more sad, they lose all ambition to extricate themselves from the slavery of debt.

Hardly a day passes that one may not see an account in the newspapers of at least one suicide as the result of worry over debts.

The slavery of debt causes more suicides every year than all other causes combined, which is a slight indication of the cruelty of the poverty fear.

During the war millions of men faced the frontline trenches without flinching, knowing that death might overtake them any moment. Those same men, when facing the Fear of Poverty, often cringe and out of sheer desperation, which paralyzes their reason, sometimes commit suicide.

The person who is free from debt may whip poverty and achieve outstanding financial success, but, if he is bound by debt, such achievement is but a remote possibility, and never a probability.

Fear of Poverty is a negative, destructive state of mind. Moreover, one negative state of mind has a tendency to attract other similar states of mind. For example, the Fear of Poverty may attract the fear of Ill Health, and these two may attract the Fear of Old Age, so that the victim finds himself poverty-stricken, in ill health and actually growing old long before the time when he should begin to show the signs of old age.

Millions of untimely, nameless graves have been filled by this cruel state of mind known as the Fear of Poverty!

Less than a dozen years ago a young man held a responsible position with the City National Bank, of

New York City. Through living beyond his income he contracted a large amount of debts which caused him to worry until this destructive habit began to show up in his work and he was  dismissed from the bank’s service. He secured another position, at less money, but  his creditors embarrassed him so that he decided to resign and go away into another city, where he hoped to escape them until  he had accumulated enough money to pay off his indebtedness. Creditors have a way of tracing debtors, so very soon they were close on the heels of this young man, whose employer found out about his indebtedness and dismissed him from his position.

He then searched in vain for employment for two months. One cold night he went to the top of one of the tall buildings on Broadway and jumped off. Debt had claimed another victim.


  1. Don’t kill yourself because of debts as that does not replace debts settlement which is the best option.
  2. Stop borrowing. Think of alternative ways of getting money.
  3. Face your creditors and be open and arrange settlement even by small amounts.
  4. Look for opportunities and once found work hard as if there is no other day to work.

Thanks and regards,

Seth Simon Mwakitalu

Entrepreneurship Consultant and Lifestyle Trainer


Tel: +255 754 441325 or +255 714 051174


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