Have you ever been in a situation where a close friend or relative borrowed you some money but when it was time to repay they went silent on you? Borrowing is so easy and the borrowers tend to be so humble but when it is time to pay back, it can be bothersome and chaotic. Today’s angel will look at loans, and some of the life lessons you can learn from them.

Learn to avoid what you cannot afford.

It makes no sense spending almost all your income on servicing a loan taken up to but a non-income generating item. Imagine opting for asset financing to buy a luxury car just because your friends own one. The interest rates are higher and you will spend most of your income repaying the loan which may be strenuous for you. In the end, your lender may end up repossessing the car simply because you were unable to repay and defaulted the loan.  

Similarly, in life, learn to live within your means. It is easy to borrow money in order for you to sustain a lifestyle. However,  if your income does not increase then it will only leave you in bad debt. You could take loans from a bank to buy that nice car, that house, and travel to places so that other people can see you are doing well, and to maintain high-end relationships, but at what cost?

Chances are you will go through an embarrassing phase when things will be auctioned or you may give other people a heavy burden to pay a loan that was unnecessary in the first place. Your angel reminds you to be content about what you have, and live comfortably within your means, you will be happier that way.

Delay to gratify yourself, it will pay off in the future.

You agree that building wealth to use in the future is more important than spending all the money on your desires and wants. Though it is easier said than done because that is how you are wired. Most times, you want to gratify yourself for how hard you work, when you see something you want, this involves money.

This can lead you to take up loans to treat yourself well, maybe add up on the money you had saved to go on vacation because you would want to add some days. You might be tired of using that bus and you want to buy a car because you feel you deserve it. Choosing to rely on budgeting and instant deposits to your savings account can change that.

With the availability of instant loans that do not need collateral, it is very easy to access loans if you do not have the self-discipline not to. These kinds of loans have very high-interest rates than secured loans because the risk of being defaulted is also higher. However, the rates can vary wildly depending on the borrower’s history. Today you are reminded to learn to not always satisfy that urge that you need to live comfortably each time.

Prioritize your budgets for use for important things. You could be a parent who is doing a good job, but you choose to buy fancy cars and live an extravagant family yet you have not invested in the future of your children. You could use that money to save for college funds for the children and save as much as you can because the rainy days surely come.

Do not be discouraged by the negativity surrounding you.

Women have had difficulties growing financially in most parts because of the inequality that is there in society. The financial resources that have been available to them have been very minimal. You agree that with the availability of loans now, it is only right if you use the opportunity to grow and discover yourself.

As much as loans can be crippling, to some people, this is a savior.  Some financial institutions offer well-packaged loans to better the minorities and those whose needs are not catered to. You could be a woman who has had so much desire to have a business and be financially able to provide for your children.

You could be a woman who has just left an abusive marriage or you might have a spouse who does not provide for you or even offer to take your children to school. You could go to the nearest financial institution and check out the type of loans they have for women to help themselves.

Have a business plan that you are sure can sustain you and grow. This is an opportunity to have the freedom that you have always looked for. Enquire about all the necessary things you need to know including the payment plan. Create a life for yourself. Do not mishandle the money at all costs.

Learn to always have honey conversations when it comes to money.

It is still a problem for most people to talk about their personal financial situations openly. It is good to know how your relationship with money is and unload any negative financial baggage you may carry.  You could have been raised up in a way where you cannot admit that you are going through financial constraints and you would rather borrow than telling that truth.

It may be easy to tell others that you got a promotion at work or bought a home but do not want to talk about it when you are struggling. Loans are to be avoided if it is not necessary unless you are running a business and you need to expand and you have the surety that you can manage the payment. Do not go for huge loans simply because you qualify because instead of helping you, they will weigh you down if you have no purpose for them.

You could be a man who has lost his job but you do not want to tell your family because you think they will think lesser of you. Instead, you take up a lot of loans, and by the time they get to know you have already put the family in a lot of debt. Always communicate in case you are stuck. There can be solutions from others that you will not have to end up with debts.

Your angel reminds you that debts are brought forth in pain, though like children are begot in pleasure.