Loans How Avoiding These Two Habits Can Decrease Bad Debts

Good-Guy

VIP Contributor
Loans and bad debts can cause a lot of harm to oneself. This is because loans and bad debt can lead to bankruptcy and this may lead to loss of property in the end. However, I am not talking about some major kind of bad debt. Bad debt can also involve small amounts. These small amounts can eventually end up and lead to big amounts in the end and this is why it is always important to avoid bad debts that involve small amounts. So how can we avoid bad debts that involve small amounts?

Always Avoid Buying Products On Credit


Well, this is one of the most important thing because there are many people who buy products on credit and they buy things in an excessive manner because they get a vibe that they have the facility to pay later own. This can have an impact on the psychology of a person and he or she think that since he has the option to pay for goods later on, he or she can buy more products and pay later on. This may lead to bad debts.

Avoid Late Payment Of Bills


Many people receive bills on daily basis and they fail to pay the bills before the due date. This leads to excessive charging on the bills because the company usually charges a penalty for paying late. in fact, many people do not even pay monthly bills and the bill gets adjusted to the next payment cycle. This increases the bad debt.
 

Kingsley

Valued Contributor
You are right indeed, one other thing I have noticed about those people who like to always access loan is that they have gotten very used to it and sometimes for some people it is not even a function of them needing the loan to run a business they just access those loans and use thrm basically for pleasure and at the end they just leave themselves indebted. They believe they will pay back maybe from their salary or business funds.

There are some people that even access loans all because their friends and colleagues are also accessing it and these people are not involved in any business, some even access loans just to buy a car that will be use for personal purpose without using it for an business purpose, some access loans so as to be able to upgrade their social status and life a life which we all know as "fake life", all this is done in a bid to show off, hence they buy things they don't really need. While There are others who are genuinely having some financial constraints and hence their business can not survive without loans and due to economic situation the sometimes struggle alot to payback.
 
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