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Think Before You Borrow

28 Sep 2015

Nowadays, it’s very easy to borrow money for almost anything you fancy. Be it a holiday, new car, or a night out with some friends. If you need money, odds are you’ll be able to borrow from somewhere. 

The real question, however, is not, 'Where can I borrow this money?', but rather, 'Should I really be borrowing this money?'

Getting into debt is so easy however paying that debt back can prove to be much harder. The excitement of a dinner out or a weekend away is often short-lived, but the time it takes to repay it may be weeks or for some even months.

The ease with which we can borrow has put a bit of a haze over our financial vision. Yes, it is easy to borrow, but often it is not the best thing to do. What we should be doing is questioning ourselves as to whether purchases are truly needed immediately. Is a new car really necessary right now, or is it possible to save up even part of the cost first? Is that holiday overseas a must have, or can money be squirrelled away for the next few months, and then the trip made later without incurring any debt?

I think debt isn't always a bad thing - it lets us realise our dreams earlier and if emergencies happen then a loan is often your only option. However if it's putting your finances under incredible strain or you simply can't afford to pay it back then there is a problem.

If you find yourself having to borrow for everyday items such as groceries or bills then get in contact with a budget advisor as soon as you can.

So remember the big question:

Do you Need it now, or just Want it now?

Stay safe out there!

Money Penny