The end of the year arrives, the children ask for presents, that her third-grade aunt will come to the Christmas dinner, the family needs to change cars… And all this is aggravated by the arrival of Christmas, the biggest symbol of annual consumerism. You start to get infected with the symptoms of this generous time. His fingers itch. That personal line of credit in the bank becomes increasingly attractive and seductive. The eyes shine. And when you see it, it ends up getting into another debt.
The Dangers of the New Year
Everything would be fine if the world ended on December 31 after you took out your loan. It turns out that, despite all the apocalyptic promises, it will not happen anytime soon. And the beginning of the year will come again.
Along with the beginning of the year, comes IPVA, IPTU, DPVAT, licensing fee, income tax return, increase in rent. Have you stopped to make the record and at least think that you may not have the money to honor all the payments? Include an unplanned trip or year-end shopping there and next Christmas you’ll still be paying with debt this Christmas.
Why not get a loan at New Year’s Eve?
Except for the fact that you are out of clothes, an essential household appliance no longer works, your bed has mocked, a health emergency happened in the family, a loan should be avoided at all times.
Loans are emergency lines of credit. They are used when you have no choice and need that money urgently. I will try to give a practical example and not so dramatic below.
This year I decided to try masters. To do this, I would have to stop working a little to devote myself to my studies. I had a very small emergency fund to support me during this time, but even if it did not, I had to try to get used to the routine of studies and tests. I studied, did not pass (but I learned a lot and will try again next year) and I ended up with no money at the end of the month. For this, I took out a loan, but only did it after planning the payment. I will pay 50% more of the installments every year to see me free of the debt sooner, in addition to investing in an emergency fund for the next season of masters’ tests. I am already studying for the next exam and keeping myself informed to be better prepared and not having to depend on a loan again.
It was an emergency situation, because it took me a long time to make the decision to take the master’s degree. Could have waited next year and have not taken over the debt. Many things influenced my decision. And at the end of the year you can be absolutely sure, the closeness to a date as solemn as Christmas will greatly alter your perception of things.
Christmas with money or lack of it. The choice is yours and a loan will only steal you money in the medium and long term. (Photo: www.oneloansource.com)
Banks and interest rates
At this time of year, it is not just the trade that profits. Have you stopped to think about the number of people who use the 13th to pay debts or who borrows this end of the year? Do you think that the bank will have difficulties to beat financial goals?
With more cash in the box, the bank has the advantage of negotiating debt and interest. Hence, it will become more difficult to get better interest and payment terms for a loan. Now try asking for a loan in March or July and compare the conditions that different banks will give you.
Of course, the bank may also want even more money and give you good conditions. But again, the one who has the advantage in negotiating is the bank.
End of the year it’s time to reflect and save
Think differently at the end of the year. And thinking differently means putting your bills on paper, figuring out how you will get out of debt and thinking about how you will pay each of your creditors. Reflect well with your family and even friends, envelop them to help you get out of debt.
Buy less. Save more money to start the year by paying all taxes in cash. Escape the temptation of debt. It’s going to be strange at first, maybe some family and even some friends do not understand. But only who will know the peace that will bring to your mind is you.
The spirit of Christmas spreads. Absolutely sure. And we’re not telling you to get away completely from this climate. Parties with family and friends, gifts (cheap) for who is really important. You only have to learn to plan yourself better and so, start a happy and smiling new year with your pocket full for all those resolutions you have made.
Want more year-end tips? Please comment below asking what you want to know!