We all want to live a debt-free lifestyle but little did we know we are practicing some things in order not to achieve it.
So, let’s have a look at some harmful financial traps that jump us deeper into trouble.
- Lack of knowledge
We may not know how we can tell if our financial decision is harmful or not.
Some people are deeply in debt but did not plan to be so. Often, they don’t know about financial matters so they do not know how to use their money wisely, so they fall into financial traps.
- Easy credit
In other word, “easy loan” offered by treacherous money-lenders company to uneducated minimum wage earners. Since wages are not enough to make both ends meet, so the workers tends to borrow from each other or from those loan shark companies who usually charge very high interest.
If we borrow at high interest rates from anyone, that paying high interest is like being bitten by a serpent, which may eventually lead to death.
- Being a guarantor for other’s debt
As a Filipinos, we feel obliged to help another in need especially if that person is so dear to us. And instead of saying no, we opted to borrow money to cover for them.
- Sustaining credit card debt
This the most harmful and prevalent financial trap now a days. You know why? Because of unwise using of credit card. Discipline and organizational skills are needed to monitor the use or credit card purchases. Some people were not able to pay their bills on time, so they end up owing a huge amount in the credit card companies.
For us to avoid this financial traps, we must learn how discipline ourselves in spending. We must know how to budget or how to multiply our money but not buy borrowing. And most especially, we should be grateful and contented with what we have in life.
Because the happiest people do not necessarily have the best things, they simply appreciate the things they have.
Blog post by: RACHELYN DIANNE TAGUINES