Everyone will need to borrow money at some point in their life. Indeed, every year, 1.3 million people will borrow money to fund their education in University fees. But even this type of loan is not taken all that seriously by many people. They know they will pay it back at some point, and once that time comes, it can be a shock to the system.
All of this raises the question of borrowing money to begin with. Should you ever borrow money? Is it acceptable to accept funds from friends and family? Or, should you try to fund everything you do yourself. Loans seem like a natural part of everyday life. They have been around for years, so when it is okay to borrow?
If You Want to Improve Your Credit
Every time you use your credit card, you are borrowing money. If you pay this money back regularly or even merely meet the minimum payment, you can improve your credit score.
For younger people without any credit history, using your credit card for small and regular purchases, such as your phone bill is perfectly acceptable.
Using these methods will help you boost your credit score, which can put you in a better position when you want to buy a car or get a mortgage.
To Improve Your Quality of Life
Improving your quality of life does not mean to ditch your existing flat and move into the mansion down the road. Instead, it refers to things that would be considered ‘essential purchases’.
These essentials include anything from a new washing machine or boiler so you are comfortable in your house, to looking for personal loan approval online to help finance a car so you can get to work without spending hours of your day on public transport.
While borrowing this amount of money can seem steep at first, the benefits that come from it can help you be more sensible with other aspects of your finances.
When You Know You Can Pay It Back
They say to never lend money to family or friends, and while there is an element of truth to this, small loans (like really small loans) are acceptable.
Say you need to get a taxi home. What is £20 between friends? Even higher costs, such as needing to borrow money for a night out or even a holiday is something you can pay back quickly. Borrowing money from friends can certainly be risky, but as long as you don’t get in too deep, you can maintain your friendship and have the experiences that are worth so much more than a few paper notes.
Don’t Beg or Steal, Just Borrow
There are always circumstances where you should borrow money. If you relied solely on your finances, you might not be able to fulfil your potential, and you might not have the opportunity to give yourself and your family the life you want. As with any financial burden or situation, though, you must make sure that you pay the money back so you don’t run into further problems.