In general, someone takes a debt because they have a need, whether urgent or not. One thing that must be carefully remembered and taken into account when taking a debt is the interest rate that must be paid.
An object or service that can support needs is indeed better we have ourselves. However, make sure that your main needs are met before making expenses that are not too important. You must be able to determine whether you are able to pay off debt or whether the debt will burden your financial capabilities in the future. Inevitably, many people choose to set aside these considerations and assume that all will be well. This attitude will actually cause the bad effects of debt. What are the bad effects of debt, if you are not smart in managing it?
Owe Without Financial Purposes
If you decide to have something in debt while you still have to bump into meeting your main needs, this means you don’t have a mature financial goal. Debt like this will actually add freely because you have to think about installments, including interest that must be paid every month. If your remaining income is enough to pay off debt, then you will have difficulty meeting other needs. You can also experience stress when dealing with your debt bills.
Owe To Pay Debt
If you get a new loan offer when you have to pay a large amount of debt and a very short amount of time, what will you do? Most people who face similar pressures will decide to take a new loan. You might think that the most important thing is paying off the debt beforehand, even though, this will only cause new problems that could be much bigger. Taking debt to pay off debt – digging a manhole cover – is clearly not a debt free solution.
Debt Considered Additional Funds
Never consider the money you get from borrowing at a bank or online loan company as “extra money”. Do not also underestimate the debt you take, the money from the debt is an expense that of course you have to pay within a predetermined time.
Owe without Mature Calculations
Before you decide to take online loans or other loans from banks and individuals, first check your monthly income. If you are a professional worker, write down the salary you receive and calculate expenses each month. Don’t forget to set aside for savings and check the remaining amount. If the amount matches the installment value of an item that you want, please take the debt to buy it. The most important thing to do is not just estimate your financial capabilities and always do the calculations in detail.