After seeing so many indebted people get pummeled by the recession — not to mention the auctioning mess many find themselves in — a newfound fear of borrowing has crept into the minds of many people. Young people are graduating with the highest levels of student debt – helb loan (Higher Education Loans Board) — Kes 240, 000 on average and therefore the last thing one would want is to incur other debts. Many young people equate debt with bad consequences. They saw their parents suffer and the whole economy suffer because of too much debt.
Although a shift towards saving over spending can be a positive think, and foster steady economic growth instead of volatile booms and busts, an exaggerated fear of debt can deter young people and in this context farmers from important investments in their future. One bank official said; “Not taking on debt is sinking the futures of many young adults” and I think my money will go with this particular person.
With the current youth unemployment crisis among the youths and huge untapped opportunities in the agricultural sector, all the youths need to do is to shed this uncalled for credit phobia and make use of these excellent credit opportunities offered by financial institutions to farmers and the wannabes. These credit opportunities are like the moon – just like it, they have their dark and brighter sides too depending on the debtor. Armed with correct usage of the loan and adequate information, a loan should help us invest in agriculture salvage us from unemployment and food related problems.