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When you purchase any goods or service and do not pay money for it immediately, it becomes a debt. The essence of credit is to be used in the purchase of things that influence and improve the quality of your life in one way or another. The credit can achieve projects and goals in less time as long as it is considered for real needs and value. The need is what will determine the urgency with which you wish to take a loan.
You may have done a good purchase or you may have taken a credit facility with real benefits and understandably, it is also equally important for you to increase your income and decrease your expenses, most appropriately, the credits instead of simply ensuring comfort, tranquility and welfare. It is because, there may be adverse situations that can strike at the foundations of your finances.
More or less, all of us go through financial difficulties at some point of time in our life, and you are no exception to it. In the same way, before knowing how to get rid of that unwanted debt, you must be clear in your mind that you failed to avoid a repeat offender in the future. There are mainly two factors that make debts get away from our hands.
1.The degree of necessity: Every now and then, you may feel tempted and seduced by the items that are not really needed, or that it is not the right time to buy those items and still you feel a great urge and buy it because of that attractive looking advertising. But, you have to think about your situation too. When was the last time you wore that pair of slippers or shoes you bought on sale a few months ago or the red and blue mixed shirt that stands out in your wardrobe?
It is very much possible to buy things by not applying for a personal loan. But they are the things that are taking over your credit card, things that make you spend more than the budgeted amount for the month. Plan for some useful things, things that will generate something like an income, knowledge or safety. So when you go out shopping the next time, question yourself whether you really need that pair of shoes so attractively displayed in a shop window or you can do with an existing one.
2.Information: A lot of people get into debt because of ignorance. What is the date of payment of your card or the legal date? How many days of grace does your bank gives you? What is the rate of financing your card and if you overdraw your loan whether the interest for the overdrawn amount is at the same rate or at a higher rate? Whether it has unemployment insurance or disability insurance? Whether you could make a debt consolidation if you have more than one loan or credit card and whether you could make a loan restructuring? Yes, many people get into debt because of ignorance.
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Yeah, true saying. But sometimes, most people can't be able to differentiate between needs and wants. That where most fall into debt. The needs on its own may not necessarily land one into debt but when one begin to advance from satisfying his needs to gratifying his wants you see yourself ruining into debt.
Life is a path and parcel of the happenings within us. Be it as it may, concentrating on your needs paves way to avoid incurring debts in our lives.
On the other hand, information is the greatest builder of life. Hence the popular saying, "If you're not informed, you are deformed." Ignorance is the highest deformity anyone can think of. We get to be updated all time so that we will not get into undefined exigencies. Thanks for posting!!!
In my opinion, if we wanted to gain more profit in business either goods or services. The start up the business with capital. In this way, debt will not be the end-result of the company. As much as possible, we need to prevent from having bank loans. Thus we need to avail insurance for the company.
Sometimes it is better to take loan specially if one has the capacity to repay in small instalments. Rather than spend one's own money that is invested elsewhere generating income it is better to keep that money safe and payback the loan taken.