Buying items on manageable monthly repayments is a whole lot easier than a one lump sum payment. You can justify a few extra bucks a month a lot easier than you can explain dropping a few hundred or even a few thousand on something before you even take it home with you.
Regardless of whether a debt is a good one or a bad one, it’s a fact that any liability can cause serious emotional effects. If you look at any study on this topic, they show us what we already know: financial constraints are about much more than money.
If you focus on money, lending, interest and how it works, then you will end up making smart decisions about money consistently. Individuals always make mistakes with money, borrowing, and their future. In fact, the percentage of people making these mistakes is around 95%!
Borrowing can solve your immediate financial problems, or help you buy something you need. But sometimes people get it completely wrong. Even the best financial initiatives can sometimes turn out to be stupid borrowing strategies if inappropriately planned and analyzed.