We often talk here at Moolr about the consequences of using our products. It is essential to be aware of them after all. But what about the wider connotations of simply owing money. It can have very differing effects on different people. We examine the effects of having debt.
Virtually all of us have debt of some sort. It is unavoidable for most people. And it does not have to be a bad thing. Borrowing money provides endless opportunities for us in life, and if we use it correctly and responsibly, can be a great boon for us all. Take mortgages for example. They are debt, but allow us to live in the homes of our dreams. What could be better than that? We accept the need for debt, to get the better things in life.
So by allowing us to buy things before we have all the money needed, life becomes much more accessible and enjoyable. Lending makes sense for both parties. You get to pay off purchases over time, spreading the cost. And the lenders of course make a profit from the interest charges and any other fees.
Let’s be honest. We would all rather be free of debt. It’s just that is not a realistic proposition. We would all prefer not to have make regular repayments, and have full access to any income. And we should never underestimate the negative effect persistent debt can have on people. It can cause untold stress, anxiety, and ruin lives. So here at Moolr we only source funds for those that need it. People must be aware of what they get into. Debt can ruin lives, if there seems to be no way out of the circle of debt. If this sounds like you, then do not turn a blind eye. Seek help and talk to someone.
For me the key effect of debt is its influence on your monthly budget. Debt repayments force you to examine your budget more carefully. This is not necessarily a bad thing. you must ensure that each month the money is in your account so make the relevant repayments. Struggling to make repayments can cause further stress and put strain on personal relationships. We all want to pay off debt as soon as possible. But what is more important is that you can afford to make repayments each month.