Secrets of Borrowing Less

It is always wise to borrow less than more.  Cultivate the mind-set that you will borrow only for absolute necessities, and that you will repay the loan at the earliest possible date.  Paying back a larger amount than the required fixed payment will help you retire the debt early. 


For what things should you not be getting a loan and for what would you borrow?  In general, it all depends on your ability to repay the loan within a practical period of time. 


While you could obtain credit to purchase an asset with reasonable potential to gain in value, you should not borrow for something that will continue to lose its value from the moment you buy it. 


Another sensible cause to borrow money would be for something obtained that would bring you income opportunity.  If you have a skill or a trade and a particular tool or machine that would generate additional income, then credit might be a possibility to explore.



Your thoughts on this subject?  Your comments appreciated!


Content © Rich Brott, 2011

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