Buddy, look at our friends and neighbors. Many get caught in debt bondage, from credit cards to loan sharks.
Such debts usually arise due to a lack of self-control in terms of sorting out what we need from what we want. This typically involves consumerism.
Let’s say we’re hungry. What we need is food. Rice and healthy side dishes will do. But if we opt to eat in a restaurant alone or together with friends choosing meat and side dishes from the extensive menu, that’s a want.
If losing control, debts would be a bad habit. When debts pile up over time and we inevitably sell assets to pay off. We know of a phrase saying: To rob Peter to pay Paul.
Well, if you have to owe debts, here are the good debt management practices.
- Just borrow money only for the essential and productive needs such as buying a dwelling house or for business capital.
- Avoid loan sharks collecting your debts. Just make haste to a bank or financing institution such as a leasing company to discharge your debts with a low-interest and friendly credit.
- Never have a credit card if you earn below Rp3,000,000 per month.
- Pay your credit card bill in full every month.
- If you fall into debt, rush to sell your items you have bought on credit and pay off the debt.
Let’s learn to control yourself. If you want to buy something, just bear in mind: you need or you want …