For some people, accessing a loan from a financial institution or a friend is inevitable in order to meet one’s short term and sometimes long term goals. However, when it comes to fulfilling their obligation to pay back, majority fail for different reasons. As a result, many have stunted growth, financially, simply because they can not find anyone to give them financial relief when in need.
Getting financial aid in the form of a loan shouldn’t be a big problem because people come from different backgrounds and for some, generational wealth or wealth transfer is unheard of in their lives for nonetheless, life has to move on. At some point, you tend to have very many plans only to realize that the funds at your disposable are insufficient. What do you do? Do you cancel the plans? That’s always a challenging situation that has left several people in unwanted positions dependent on their course of action.
However, one needs to be disciplined in order to avoid paralyzing their financial growth in case of failure to pay back. You need to develop a habit of paying back money lent to you at all costs even when you think it’s a very small amount that cannot cause any negative impact to the owner. That’s just your mindset which shouldn’t be generalized because, for majority of successful people, there’s no small amount of money especially if you requested it with an obligation to pay back later. I overheard a conversation between two men four years ago near my workplace and one told the other that ” If you give someone a small amount of money and they don’t pay it back simply because you’re friends or it’s being small, cancel financial relations with them because they will still find excuses to avoid meeting their obligation when you give them a bigger sum of money”
As a matter of fact, it’s impossible for everyone to be in a position to raise start-up capital from family wealth, routine work, or paid employment, however, several people out there are taking advantage of the credit system especially average earners who already have collateral to offer as security to financial institutions. Those who are yet to get to that level especially the youth can also get loans from friends and relatives who are willing and able to help. This though requires the highest level of discipline and good characters for people to trust you with their money. Therefore, the biggest question is how is your creditworthiness? Can you pay back one’s money as per terms and conditions of your loan or you have to first cause all sorts of drama? Do you communicate where necessary in case of a genuine reason for failure to pay back?
Be ready to pay back in case you opt for financial aid because there’s a financial constraint that arises from bad credit(poor debt management). You’re most likely to lose friends who would have been so crucial in your way to the top considering the fact that we all need one another in different situations. Besides, debts can be very stressful and lead to depression if you don’t handle them carefully. What happens if your circle of friends is shrinking because of your own misdeeds?
However, with a positive attitude and a clear strategy of resettling your debts, they can get the best out of you simply because of the drive to work harder towards financing them just as many tycoons are testifying. Subjecting yourself to a little pressure keeps your focus on things that matter more in your overall growth and the immediate outcome will be progress.
Do you even ever take time to ask different people in a better position about such topics of financial literacy? Perhaps, you need to, moving forward.
