We live in a society with very easy access to credit. The money of others is available to everyone at almost any time and place. From the bank that offers you a loan to furnish the whole house to the shopping center that finances the purchase of any item, the possibility of getting into debt is always present. But the dangers of debt are there.
For this reason, if we do not want to make a serious mistake that we regret for a long time, we must be extremely cautious before buying on credit. For this, it is best to be aware of the risks arising from indebtedness.
In our opinion, these are the three dangers of debt:
We spend money beyond our means.
When we use money that is not ours, the normal thing is that we also spend it as if it were not ours. What we mean by this is that when financing a purchase, in many cases we spend money beyond our means. In other words, we buy things that we really can not afford.
Maybe we are not willing to buy a new television that costs 999 euros, but if they offer us the possibility of paying it at 45 euros per month, things change. Those 45 euros are an amount acceptable to almost everyone, while the 999 euros are not. However, the money we will finally pay for the television will be much higher if we split the payment and also pay interest and commissions.
We pay a lot more money for the same product.
Debt and interest payments go hand in hand. These interests mean that when we get into debt, we pay a lot more money than if we bought cash. The commissions linked to many personal loans and credit cards also increase the final price of the product we finance.
Returning to the television example, for a 24-month financing with an interest rate of 8%, the monthly payment would be 45.18 euros. This means that in total we will be paying 1085 euros for the television, that is, almost 86 euros more than if we paid it in cash.
We live stressed and afraid.
Debt enslaves people. If we live with a mortgage, a personal loan and a couple of unpaid credit cards, we become slaves of our money: we no longer work for ourselves, but for our debts.
One of the worst things that can happen to a person is that he loses his freedom. Excessive indebtedness can have a serious impact on our mood and can cause our personal relationships and our health to be resentful.
In a context of safe and risky indebtedness, at Hypocredit we offer our quick loans of up to 300 euros without interest and without commissions. This means that you can finance any purchase and you will only have to return those 300 euros, not even one cent more. Do you need more info?