Ruby is a classic story. She is a high flyer both in her academics and in her career. She earns 6 figure incomes at the time when her peers struggle to get a good pay. She was happily married and with a kid. And she had many friends. But all this took a nose dive when she committed a big financial mistake. She got into a business partnership which she totally did not understand. In spite of the business losses, she did not properly address it for she was comfortable with her 6 figure income. She thought that the solution to the business problem that was in the losing end was to borrow more money to infuse in as capital. So she borrowed money from family and friends, and from credit cards confident that she could pay it off with her salary and bonuses. But a big twist in her career happened. She was forced to resign from the company she was working for. Thus, payments to her loans were defaulted. Once again, she resorted to heavier borrowing even at a 20% per month interest charges. A desperate move that led to further desperation. She did not had any emergency funds nor savings, so she had to pawn and sell everything she can for four months she was jobless with lots of debts. Not only was her financial life in shambles. Her marriage collapsed to the pressure and she separated from her husband. Most of her friends abandoned her. Her consolation is her family that had had been very supportive of her plight. She committed the mistake of getting into a business that is not in her competency. She also failed to get a coach.
Rose, Roger and Ruby had gone through painful experiences, and mistake that caused them to sink into the debt trap. Like us, we got into our financial woes for we were financially ignorant, and so comfortable earning a living through our employment which is not permanent. Like us, they resorted to so much borrowing instead of doing the right thing.
