If the borrowed money via credit is spent as an investment to develop any resources, be they mental, social, or financial, it helps the borrower. However, if it is expended without any meaningful returns, it basically "robs" one's own future!
As typical with any double-edged tools, instead of being properly used, the credit mechanism is mostly misused in buying expensive homes, cars, vacations, etc. by indenturing themselves to their income source in their prime-part of their life. The person, who is using the "free money" that comes through the credit, has a mixed feeling of luck and pride and often does not hesitate to spend on unnecessary things as he does not see the real value. More over, in any major transactions, America cleverly weaves layers upon layers with limited choices and forced upgrades, it is too easy to end up paying for unnecessary bloat-wares.
When one gets the benefit without really deserving it, at present, there is a risk of losing the intended benefit, in future. So, right after Credit, her sister "Insurance" was born! For anything and everything, one end up paying for Insurance... For a potential few who may end up losing the intended benefit, everyone ends up "paying" to cover that risk. This is nothing but the other side of "Communism," which in principle tries to distribute the reward equally to all that was gained by few and Insurance distributes the risk to all for the benefit of the affected few.
These two "sisters" operate in a subtle manner and those who understand their nature may benefit from them but, alas, they are very few from my observation!
Those who are emotional, aspiring to be overnight millionaires, vulnerable to peer-pressure, lacking self-confidence, fearful of future accidents, sensitive to the social stigma on failures and bankruptcies, etc. are easy preys to the cunnings of these Maya sisters!
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