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The Shocking Predatory System Bankrupting an Entire Generation—And No One’s Stopping It
How hidden traps in loans, credit, and policies are destroying young people’s futures.
Ark
August 20, 2025
A few years ago, I found myself in the market for a new used car after my 17-year-old Honda finally gave out. I had been saving diligently, knowing this day was coming, and had $15,000 to $20,000 set aside for the purchase. After weeks of research, I settled on a pre-owned Toyota RAV4 that fit my budget perfectly. I walked into the dealership, cash ready, confident, and excited to make a straightforward purchase. I told the salesman exactly what I wanted and that I’d be paying in full, expecting an easy transaction. After all, this was a no-hassle sale—no financing, no credit checks, just a done deal.
But instead of enthusiasm, the salesman’s response was lukewarm. He asked, “Nicole, do you work?” When I confirmed I did, he pivoted, suggesting I finance a brand-new RAV4 instead. I explained that a new one cost $40,000—double my budget—and that I could buy it outright if I wanted, but I didn’t need or want a $40,000 car. Undeterred, he shifted tactics, urging me to keep my cash for “emergencies” and finance the $15,000 car instead, with “low” payments of $300 a month or $140 biweekly. This wasn’t just an upsell; it was a deliberate push toward debt.
The Business of Debt
Car dealerships, it turns out, don’t make much money selling cars. Their real profits come from financing. Dealerships partner with banks to sell loans, earning kickbacks and often marking up interest rates. For example, if a bank approves you at 5.5%, the dealership might charge 6.5% or 7.5%, pocketing the difference. This isn’t unique to cars. From houses to furniture to clothes, businesses across industries are shifting from selling products to selling debt. The product—whether a car, a couch, or a phone—is often just a Trojan horse for a loan.
This trend is intentional. Companies profit not just from kickbacks but also from processing fees, late payment charges, and the psychological trick of breaking large purchases into “affordable” monthly payments. A $1,000 couch becomes a $3,000 one when it’s “only” $80 a month. Lenders benefit further because kickbacks are often a percentage of the sale, incentivizing businesses to push more expensive items and higher interest rates.
The Psychological Trap
Financing changes how we perceive money and ownership. When you finance a car, you don’t feel the weight of $20,000 leaving your account; you see a $300 monthly bill, no different from utilities or groceries. Over time, this normalizes debt as a fact of life. After paying off a car in five or six years, many people, accustomed to the payment, upgrade to a new one, restarting the cycle. The same happens with phones, furniture, and even small purchases via credit cards or buy-now-pay-later apps. Each financed item increases your baseline living expenses, sometimes by hundreds of dollars a month.
This has profound consequences. Higher expenses mean you need a higher income just to stay afloat, leaving little room to save or take risks. You become trapped in jobs you hate, unable to miss a paycheck or take time off. Retirement becomes a distant dream when you can’t cover bills without working. This isn’t an accident—it’s a system designed to keep the working class struggling. Debt ensures dependency, giving employers leverage to demand more work for less pay and fewer benefits.
The True Cost of Debt
When you finance everything, your perception of money shifts. A $20,000 car becomes “just” $300 a month, but that $300 increases your cost of living indefinitely. Most car payments today exceed $700 a month, and the average American carries multiple such commitments. This cycle—financing, paying off, upgrading—means you’re never free of payments. You’re essentially leasing your life, even when you’ve paid the equivalent of the item’s value multiple times over.
Contrast this with paying cash. When I bought my RAV4 outright, I owned it. No monthly payments, no interest, no stress. This approach extends beyond cars. I own guitars, rare records, a $200 pair of jeans, a $1,200 camera, and a $4,000 MacBook—all paid for in full. If my income vanished tomorrow, these possessions wouldn’t burden me with additional expenses. They’re mine, and that ownership feels empowering.
Reclaiming Freedom
Americans often talk about freedom, but true freedom isn’t about consumer choices—it’s about autonomy over your life. When you’re debt-free, with low expenses and possessions you own outright, you hold the power. You can quit a toxic job, negotiate better pay, or take risks like starting a business. I wouldn’t have been able to launch my YouTube channel or buy my house if I’d been saddled with car payments, phone financing, or credit card debt. Those choices gave me options, a longer financial runway, and the ability to pursue what fulfills me.
To achieve this, prioritize buying only what you can pay for in full. Save up for big purchases, and if you can’t afford to save, you definitely can’t afford to finance. Avoid consumer debt like the plague. Keep using your phone after it’s paid off. Own your car outright. These habits make saving easier, reduce financial stress, and give you control over your future.
A Call to Action
The next time you’re shopping—whether for a car, a TV, or a burrito—remember that businesses aren’t just selling products; they’re selling debt. Don’t take the bait. Paying cash isn’t just about avoiding interest; it’s about preserving your freedom and mental peace. It’s about living life on your terms, not a lender’s. As the saying goes, when you owe nothing to no one, you live life from a position of strength.
For those navigating career or life changes, consider working with a coach from Strawberry. me to build a plan for your goals. It’s an investment in yourself that pays dividends in clarity and progress. Buy what makes you happy, but buy it outright. Your future self will thank you.
