Life on installments: How to start earning and leave credit behind
What to choose: credit or trading?
We all know people who constantly take out loans and live beyond their means. But they do not do it because life is good — they do it because they lack financial management skills. A lack of financial literacy leads to poverty, but there is a way out.
Modern economies are structured in such a way that they cannot function without credit. Banks, private companies, and even governments lend money at interest. In theory, this accelerates development: entrepreneurs get funding to start a business, families can buy homes, and governments finance infrastructure projects. Money arrives “ahead of time,” helping to realize plans that would otherwise take years.
The credit system is built on faith in the future. Yuval Noah Harari highlights this in his book Sapiens: A Brief History of Humankind, stating: “Credit appeared when people began to believe in the future — that tomorrow would be better than today.” This belief enabled the creation of an economy in which growth becomes the norm — because to repay debt with interest, people must produce and earn more than before.
Credit is promoted by virtually everyone: microloan companies, mortgage brokers, car loan providers, banks, and credit unions. Marketing slogans promise an easy path to your dreams: “Buy now — pay later,” “Live for today,” “Don’t delay your future.” However, loan conditions are often vague and hide serious risks. While major players accumulate assets and capital, the average consumer is left alone with debt, penalties, and collectors.
The downsides of credit
At first glance, the credit system seems beneficial to all: businesses grow, banks profit, and the economy expands. But in reality, it mainly serves the interests of financial elites and encourages unsustainable consumption. For the average person, it results in debt burden, dependency, and a life lived “in the red.”
Credit creates the illusion of affordability for things people actually cannot afford. Individuals buy expensive smartphones, cars, and homes believing they can manage the payments — only to find themselves trapped in monthly obligations for years. Instead of building savings and financial security, people form a habit of living in debt, where any drop in income or unexpected expense can lead to disaster.
Moreover, the credit system exacerbates inequality. Those with capital and access to cheap money use credit to scale businesses, invest, or optimize taxes. Meanwhile, those who borrow just to survive are effectively paying for someone else’s growth. As a result, the debts of the poor become the income of the rich, and the system drifts further away from any notion of financial justice.
Why fnancial literacy matters
Many people do not fully understand the risks associated with credit because they lack basic financial literacy. Without it, they easily fall for marketing promises: low interest rates, convenient terms, instant approval. In practice, these loans often come with hidden fees, late payment penalties, and massive overpayments that can far exceed the original amount. A financially illiterate person cannot realistically assess their repayment capacity and ends up committing to obligations they cannot manage.
Every person should understand core principles: the higher the risk, the more expensive the loan; any delay in payment is a fee for time; and it is better to borrow for assets than for consumption. It is also essential to compare offers, read contracts, know your rights, and maintain an emergency fund in case of income loss. With this knowledge, people can make informed financial decisions and avoid becoming victims of debt traps.
How to escape the credit trap
Let us assume you understand how money works, but life still leaves you short. You are tempted to take a loan, but your common sense tells you not to. What are the alternatives?
Instead of going into debt and spending years repaying interest, you can direct your energy into learning trading — in cryptocurrencies, stocks, or on the Forex market. It is not an easy path, but it can help you gain control over your finances and grow your capital.
So what is trading? It is the active management of your money, where the result depends not on a bank’s approval but on your knowledge, discipline, and strategy. Unlike loans, where you always give back more than you receive, smart trading offers a chance to profit from market movement — even with a small starting capital. Of course, there are risks, but they are transparent and manageable when approached wisely. You choose your assets, tools, and timing — no forced debt or fine print.
Financial markets are not a casino — they are systems with rules that can be understood and adapted to. Learning is not difficult if you follow a simple plan:
1. Learn basic terms — what is a candlestick, order, lot, leverage, spread, margin.
2. Choose a direction — cryptocurrencies, Forex, or the stock market.
3. Take courses from a reputable provider or at least watch free tutorials on YouTube.
4. Open a demo account with a broker and practice without using real money.
5. Study risk management strategies — how much of your deposit to risk per trade, how to set a stop-loss.
6. Keep a trading journal to analyze your decisions and learn from mistakes.
7. Follow news and analytics to understand how global events impact the market.
Trading will not save you from effort, but it can become a real alternative to credit dependence.
Conclusion
Credit is not help — it is the illusion of stability, paid for with your future time, money, and freedom. It keeps millions of people in financial bondage, forming a habit of living on borrowed funds and postponing real solutions. Without understanding the consequences, a person becomes part of a system that was never built in their favor.
But there is no need to give up. There is an alternative — conscious management of your finances through trading. Yes, it is not a magic button for instant wealth, but a path where your success depends on your effort and discipline. And unlike credit, it gives you a real chance to transform your financial future.
