Whether it’s buying a new gadget or enjoying dinner at a newly opened restaurant, spending your hard-earned money can provide a feeling of gratification. That impulse to spend is further reinforced by advertising messages that promote the idea of ??buying now and paying later.
It is precisely this constant media bombardment that leads many people to convince themselves that going into debt to purchase certain items is worth it. “We are not referring to going into debt to acquire a mortgage or to invest in education. We are talking about debts that are contracted impulsively to satisfy momentary desires, simply because you feel that they are deserved and you are not willing to wait until you have sufficient funds to acquire them,” detail the experts of the financial comparator HelpMyCash.com.
From the financial comparator, they have prepared a list of the three main reasons why you should never acquire debt:
Experts point out that many people convince themselves that a vacation is a necessity, even when they don’t have the funds to pay for it when they return home. Phrases like: “My partner and I need a break,” “work gives me a lot of stress and I need a vacation,” or “the offer on the flight was irresistible,” are common. While the need for time for oneself or time with a partner is understandable, how can taking a vacation be beneficial if you lack the necessary funds? Will you really feel better knowing that when you return you will have debts that will probably cause you more stress?
Going into debt to buy new clothes, mobile devices, jewelry, vehicles or dinners at Michelin-starred restaurants is a bad idea. If from the beginning you know that you will not be able to cover the expense because you do not have sufficient funds, then it is better to refrain from making the purchase. “Living beyond one’s means, acquiring things on credit that are not necessary and that constitute mere whims, is a sign of poor financial management,” experts maintain. Although it provides immediate gratification, in the long term it only generates anxiety and stress.
The “buy now and pay later” method is increasingly widespread on online platforms. Companies like Amazon, Vueling or Shein, among others, offer the possibility of paying in short-term installments. At first glance it may seem like a convenient agreement, since it allows the payment to be divided into installments. However, the problem arises when this method is used repeatedly, accumulating debt little by little without realizing it. What may seem like a small amount at first can turn into a considerable debt over time.
But not all is lost. “Make a plan to get out of debt and not get into more debt. Stop frequenting places where you are tempted to overspend. When you’re buying something you don’t need, and we all do to some extent, try to uncover the underlying feelings that lead you to want it. You are alone? Sad? Hungry? Anxious? Tired? Procrastinating? Could you postpone that purchase for 24 hours and come back the next day if you still want it?”, they suggest from HelpMyCash.
Making a budget that allows you to indulge yourself, take that trip you want so much and return home knowing that you have no debt, that will make you feel good about controlling your finances.