Loans have helped thousands of people around the world. However, these debt tools have also contributed to greater misery. In this matter, loans cannot be blamed. Rather, the spotlight should be turned on one dreadful habit: loan dependency.
If you’re loan-dependent and you’re eager to get out of the trap, here are some strategies you can try:
Reframe Your Definition of ‘Loan’
A loan is a debt instrument that helps you deal with any financial situation or emergency. That’s it – there should be no other definitions to a loan. Unfortunately, over the years, many borrowers had a warped definition of the average loan. They think that loans can supplement regular income, hence the growth of the loan dependency problem. If you think this way about any loan, then you need to reframe your perspective. Loans are debts. Loans will compromise you in the long run. Such thoughts will put you out of loan dependency.
Always Plan Many Leagues Ahead
Borrowers are entrapped by loan dependency because they failed to plan ahead. They drifted from one situation to another, often relying on loans to bail them out. Planning ahead takes a huge stretch of commitment and willpower. Once the planning is done, the execution part sets in. This is more difficult than the planning stage. Also, the quality of your plan will affect your dependency towards loans. Rule of thumb: create a life plan that will sustain you for 10-something years.
Craft Your Financial Plan
Another plan that you should think about is your financial plan. This is similar to your life plan, except that it’s focused on your finances. A solid financial plan barely has room for errors. It’s also flexible for adjustments, in case your life hits a sudden turn. Loans will always be a part of your financial plan, but they act as mere backup solutions – not wooden crutches. Be a great financial planner and you won’t be a victim of loan dependency.
Obtain the Support of Your Family
Your family is the cornerstone of your life. They will support you during dark times. If you’re aware of your loan problems, talk to your spouse and kids. With such support, you’d be reminded why you have to deal with loan dependency in the first place. More importantly, your spouse will give you budgeting insights and opinions.
Once you’ve applied the mentioned strategies, you’ll have greater chances of escaping the trap of loan dependency. Don’t believe in the excuses that your mind is conceiving! The earlier you escape from this life, the happier you’d become. More importantly, your finances will be in a great shape.