Avoid excessive debt from "summary" of CONQUER The CRASH-You Can Survive and Prosper in a Deflationary Depression by Robert R Prechter
The concept of avoiding excessive debt is crucial during a deflationary depression. When economic conditions are deteriorating, it is essential to be cautious with borrowing money. Excessive debt can become a heavy burden when asset prices are falling and incomes are declining. Taking on too much debt can lead to financial distress and potentially bankruptcy. In a deflationary environment, the value of assets may decrease, making it harder to repay debts. This can create a cycle of debt and financial hardship that is difficult to break free from. It is important to be prudent with borrowing and to only take on debt that can be comfortably repaid. By avoiding excessive debt, individuals can protect themselves from the negative consequences of a deflationary depression. Instead of relying on credit to finance purchases, it is advisable to save money and only spend within one's means. This can help to build a financial cushion and provide stability during uncertain economic times. By living within one's means and avoiding excessive debt, individuals can better weather the storm of a deflationary depression.- The key to surviving and prospering in a deflationary depression is to be mindful of one's financial situation and make wise decisions when it comes to borrowing money. By avoiding excessive debt, individuals can set themselves up for financial success in even the most challenging economic conditions.
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