Credit & Origin
Credit existed long ago since the ancient historical moments. In the nomad days, travelers roam around this small globe in search of new products and acquiring new knowledge. When someone offers things to them, these nomads need to present some goods as well. Towards the end of the journey, they don't have anything left to exchange hence credit kicks in. The nomads will remember the presenters and head back for reporting before sending the respective gifts or tokens of appreciation. As you can see, credit begins a long time ago.
Who is Eligible for Credit term?
As credit is a futuristic thing, not many are willing to forgo current pragmatism for optimism. The reason behind is on the question of whether it is feasible and viable for future earnings. Then, who exactly can borrow and why? As modernization occurs, the government needs to incentivized its people to create more jobs, more opportunities and invent new things. Hence, credit evolve to be part of the society.
Is credit a good or bad thing?
Depending on individual's circumstances, credit can either help or destroy you. Lets say the borrower is leveraging on credit lines to expand finances through 'safe' investments or private funding, this will benefit the lender over a long period of time, possibly providing a sustainable lifestyle. Assuming the lender is trying speculate on gambling activities for a fortune, trying to pay off his debts, he might face crucial problems in the society. Having said that, if he is able to manage his finances well, why must there be a need to borrow more money using future cash (credit) to repay his installments?
How to manage Credit Lines and Borrowings?
The answer to handling expenditure is to adopt a prudent concept as well as a conservative approach in anything pertaining to money. When it comes to mortgage loans, housing needs is mandatory but owning the class of properties can be controlled. If an individual has the financial capability to purchase high-end properties, so be it in leveraging on mortgage specialists. However, if the individual has no financial competence in owning boutique classes, it is more prudent to take up a cheaper alternative. The rationale behind such decisions is that in a catastrophic event like recessions or smaller scale ones such as job loss or disability, the individual still yields credit power to repay the facilities.
An alternative, or widely known as protection, is to get insured by buying insurance policies. With respect to the relevant big ticket items, managing credit can get tough when sudden events happen hence insurance schemes are created to prevent against sudden losses. The good thing about being insured is that some insurers (mainly from Insurance Union) may have clauses in full compensations and it is definitely wonderful news to the ears.
As long as the borrower is able to accede to credit requests, while taking a conservative approach and adequate preparations, there should not be any big hassles in the long run. History of Credit begins a long time ago and is here to stay for almost the next century. There is no need to be fearful of cheap credits and nowadays, more schemes & regulations are in place to protect credit lenders.
How to manage Credit Lines and Borrowings?
The answer to handling expenditure is to adopt a prudent concept as well as a conservative approach in anything pertaining to money. When it comes to mortgage loans, housing needs is mandatory but owning the class of properties can be controlled. If an individual has the financial capability to purchase high-end properties, so be it in leveraging on mortgage specialists. However, if the individual has no financial competence in owning boutique classes, it is more prudent to take up a cheaper alternative. The rationale behind such decisions is that in a catastrophic event like recessions or smaller scale ones such as job loss or disability, the individual still yields credit power to repay the facilities.An alternative, or widely known as protection, is to get insured by buying insurance policies. With respect to the relevant big ticket items, managing credit can get tough when sudden events happen hence insurance schemes are created to prevent against sudden losses. The good thing about being insured is that some insurers (mainly from Insurance Union) may have clauses in full compensations and it is definitely wonderful news to the ears.
As long as the borrower is able to accede to credit requests, while taking a conservative approach and adequate preparations, there should not be any big hassles in the long run. History of Credit begins a long time ago and is here to stay for almost the next century. There is no need to be fearful of cheap credits and nowadays, more schemes & regulations are in place to protect credit lenders.
No comments:
Post a Comment