Nowadays we can safely say that it is all about money. It is everywhere – we pay taxes, bills, do the shopping always having our pocket open for new expenses. But for some reason we feel reluctant when it comes to borrowing money. What makes us so afraid of being in debt? There are numerous kinds of “financial myths” that we still believe in and they stop us from using our credit cards, taking out a loan etc.
We need a wide financial knowledge to borrow
Some people believe that they lack knowledge about finances and that stops them from making any decision connected with money whatsoever. It is a great misconception that we need any knowledge at all. What we really need is the ability to read and do a simple research on the Internet. What might be useful is a basic math and a bit of patience in fulfilling all the formalities related to our loan. Everything else is a matter of asking our lender.
Being in the red is something we have to avoid
We are used to thinking that our balance should be a positive number or at least a zero. Being in debt means that we are unable to plan our expenses properly. But is that always true? Not exactly.
Expenses, savings, outcomes and incomes are things we often cannot even plan. We live in a society in which everything happens very fast and that destroys our financial stability. The crucial skill in this situation is to be open for a possibility that we may need extra cash or a little help from others at times.
Good credit profile = no borrowing
As responsible people we should care about our credit profile. That means we should pay our bills at the right time, never default. But what about borrowing? Is it forbidden? Many would say yes. But that’s not the case. When we want to pay for something in installments the vendor will obviously check our credit profile. Without any loans, credits, debts that we have managed to pay off we are like an unknown individual – we can’t be trusted. The salesman has little to none information about our financial status and can’t even tell if we are responsible or not. And that is never good.
Am I on a black list?
Even if you make one or two mistakes such as being late with payment or having gone through a bankruptcy it doesn’t mean that you are cursed forever. There is still a chance that you can rebuild your credit profile, even if you happen to land on a blacklist – a database of debtors. You only need to change your habits when it comes to punctuality and planning your expenses.
Out of control
Some of us are convinced that being in debt is connected with a little mess in our life. We may be confused, it can be difficult to keep up with every single expense and installment that we have to pay. On the other hand our finances require just a little bit of care nowadays with our level of technological development. We can use our mobile phone, computer to calculate our credits, try electronic calendar to have everything written or even use a simple tool – direct debit that pays our bills without us doing anything.
One loan leads to another
There is a belief that when we take out our first loan, sooner or later it leads to the next one and so on. What we don’t understand is that it is only our decision if we are going to borrow more or not. The essence of this statement is that we are supposed to trust ourselves and believe that we can be responsible for our life and finances – as adults we should know what is good for us. And if we don’t then why not ask someone qualified for help?
Money is scary
Common misconception is that money is something dangerous and can cause problems. Having financial ups and downs may seem scary and unpleasant experience but it shouldn’t be like that. We must be aware of the fact that money is only a tool, a way of gaining something rather than an aim itself. This little change of mindset will probably make our financial life easier and improve our feeling of security.
People are cruel
To take out a loan we need to contact at least few people – financial advisors, bank staff etc. Sometimes we are afraid of them being unpleasant or simply not understanding. This happens of course but we have to keep in mind that our well-being is up to us not a single worker of an organization. To avoid such a situation, the best way is to look for a well-qualified advisor.
Having financial problems makes you worse
Borrowing is a sign of having some financial problems. To avoid being labeled as irresponsible and not wise enough to plan our expenses, we avoid borrowing. There is a simple way out – we have to know better. At present many people struggle with their finances and search for a solution. If we can’t make ends meet the best option is to borrow money that will make our life easier at least for a moment.
Loan causes stress
Some of us avoid borrowing because we are afraid of… Being afraid. We may think that our life will change drastically and we may get into even bigger trouble for example borrowing money from numerous organizations and being unable to pay it off. The remedy for those fears: plan everything in advance. Try to predict and stick to your plan if that is possible. A plan will give you a sense of safety and control.