Do you really need Credit

Credit a necessity or a want

The first question in mind is whether credit is necessary for daily survival. If the answer is Yes, then the individual needs to rethink the plans being set out else risk being debt-ridden for life. While it is not wrong to take advantage of cheap credit in this low interest rate environment, one must be aware that nothing last indefinitely and one day, interest rates might revert back to norm and outstanding loans will be hit. A debt-free lifestyle is ideal but there are several loans that are inevitable to an average consumer - mortgage loans, car loans and recurring expenses.

Questions to ask before taking up Loans on Credit

Two things to ask before tapping on future cash - "Is this Credit necessary" and "Is this Value for Money". If these two questions are unanswered, needless to speak, get rid of them. Let's say you need a car for traveling purposes, it is good to take up a loan if you're just starting out as a businessman but the key question is on the loan amount being taken up. Why overstretch your finances by buying a newly imported BMW when there are so many secondhand cars available at unresistable prices? In fact, a basic sedan can transport you from point A-B at competitive timing with a fraction of costs. How about purchasing a new house? Why buy an expensive villa with heavy maintenances from pools & gardening when a low-cost house with beautiful decor is up for discount? All these expenses can be controlled with prudent judgments, eliminating insanely high costs in the long run and benefitting borrower's in terms of financial health.

Holiday trips funded with Credit Cards & Debts

It is good to travel abroad with friends & family members for rest and relaxation purposes. All is good until the word 'credit' kicks in. Why must the holiday be saddled with credit card debts or loans from credit lines? Is the overseas trip too expensive for you to handle? Scrap the ideas of going abroad if the individual don't have the financial means to do so. Seek alternatives like going to a beach down the borders or simple picnics in the green grasslands. Similar characteristics but great difference in finances. Eradicate all credit card debts and only take advantage of credit cards when opportunities arise. Get out of credit lines as it is going to be crazy remunerating hefty interest rates albeit low inflationary measures. None of these future cash can aid you in generating better returns.

Contentment vs Credit lifestyle

Do you really need Credits for survival? No one is in the right position to judge your spending but if someone needs to stand in your way like credit bureaus or licensed moneylenders, something is very wrong with your current lifestyle. A cool suggestion is to lead a contented life by indulging in happiness and not extravagance. Daily parties in luxury yachts or fine dinings can never provide permanent joy. It has been proven that long term contentment derives from a debt free lifestyle. Even before splurging on credit cards, ask yourself, is this thing really a want or a need?