THE GIFT OF GOOD BORROWING PRINCIPLES The dawn of a new year often comes with a myriad of other emotional needs, wants, and desires. All of which, can place an incredible demand on our ability to make it happen or not. More often than not, we get stuck in the Battle of the Mind on whether or not a credit transaction will benefit our budget, or whether the ever-increasing desire warrants an immediate take up. In itself, an emotionally draining experience. HOW DO YOU DECIDE & WHAT PRINCIPLE CAN YOU APPLY THIS FESTIVE SEASON? Credit can be defined as your ability to receive goods, services, or funds as an advance based on trust that payment will be made in future. Therefore, Credit serves a vital purpose in our lives as we are not all privilege to the benefits that comes with trust funds and estate planning. Not only does credit provide us with buying power to establish ourselves for the future it also plays a vital role in our economy. Therefore, as recipients of credit we owe it to ourselves and our future generations to stay clear from willful harm that comes with keeping up with the Joneses.
PRINCIPLES WHEN APPLYING FOR CREDIT
Be honest and upfront about your Affordability • We often know before applying for credit whether we can afford the monthly payment for the duration of the loan, regardless of what the loan outcome is. • The minute our decision is contrary to what our subconscious are warning
20
us against, we are willfully stepping into a space where our budget can be compromised. Review the Loan Purpose. Reflective Honesty should lead your response. • Will the credit application enrich, uplift, or develop your current situation? or • Is the transaction driven by the need to keep up with the lifestyle of someone else? Understand the rules of engagement. • Payment mandates – Repayment term, repayment date, payment options. • Interest free windows – Familiarize yourself with the interest free period available on selected credit cards. Understand the Terms and Conditions. • Repercussions of non-compliance – Failure to pay or past due payment leads to adverse listing, which will negatively impact your future ability to obtain credit. Always choose the borrowing solution best suited for your need. • Unsecured Personal Loan • Credit Card • Vehicle Finance • Student Loan • Home Loan
HEALTHY LIVING WITH CREDIT
Always operate within your budget. • Your disposable income is a clear guideline on
