On the other side as well as debt relief, we are often faced with the situation, need money immediately, while our income was insufficient. Certainly one solution is get a loan or debt. So how do we manage the loans so that we avoid the grip of debt? The following two questions will lead you to avoid the grip of debt. Does my income can afford the loan/credit according to the agreement in the future?
Debt trap begins when we are not aware of our own capabilities. Because of the ease to borrow or take out a loan, make us forget our obligations in the future to pay the mortgage. Try to always spend a time to evaluate our ability first before deciding to take a loan or credit. It is recommended that the entire amount of installments to be paid in the following months, not more than 30 percent of the total monthly income.
Whether the loan are based on my needs or just my desire? Very thin indeed the difference between needs and wants. A friend defines, to distinguish between needs and wants, must be viewed in terms of its function. Something said to be a desire when it is in addition to its main function. So the keyword is in the function.
A simple example, eating is an inevitable need. Not just human, every living creature needs to eat. Eating will give you energy and health for humans, then eat nutritious foods is the need for all of us. Food has a primary function as a source of energy for the body. While providing delicious flavor of food is an additional function. Thus, having delicious food is the desire, not necessity. But that does not mean should not eat delicious foods. It's just that we need to consider first whether the expenditure for the delicious food will sacrifice the other needs of or not.
Well, just like in the decision of making loans or credit. It is because we will sacrifice our buying power in the future, should emphasize a loan or credit on its main function, according to our needs. Be patient of our desire to gain additional functionality.
For example, having your own home is everyone's needs. Having a home provide value added benefits. Land prices are usually never decrease. One of the ways to have a place to live is by taking a loan or mortgage. First review the ability of your income to pay the mortgage and do not forget to study the requirements imposed by the Bank. As a customer we have the power to bargain in terms of debts, payment and loan interest rate. And do not forget to suppress the excessive desire. If you still live alone, we do not need five bedrooms, right?
We should not be afraid to have debt. We have to know and identify our capabilities and needs for the benefit of the debt in our personal financial planning and manage the debt wisely. Debt would be harmed if we are careless.
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