When you have been deeply indebted, and then you have got rid of them, you will definitely come up with different revelations that you had never imagined before. When you receive and repay credits, you go through the entire credit cycle and therefore you will definitely get something new when you come to the other end. And if you’ve been on credit, repaid it and once again entered the credits, but then was able to repay it again, your experience is definitely even bigger and with each and every time you take the loans you want less and less, until you finally make the final decision, that lives without credit. Here are some of the lessons that I gained through the whole credit cycle.
Without paying interest you save money
It may seem quite self-evident that if you do not have the credit you do not have to pay monthly payments for them, but the biggest benefit we can’t even see on a daily basis is the credit interest that you will not have to pay after repaying the loan. For example, if you owe 10000 Euro and you have a 10% APR for this credit, then every year you pay 1000 Euro, which is 83 Euro a month that you could spend on other purchases. When you no longer have credits then you realize that you actually lost so much money and now you can pay not for what you have bought in the past, but to buy things now and maybe even save money for the future. When you repay your credit, you not only provide your present but also think about your future, because after you no longer have to make a loan payment you will have a significant addition to your monthly budget, which you can use for self-pampering or saving for the future.
Money is faster to accumulate than repay loans
If you have the same 10 thousand Euro loan, it will be much more difficult to repay than to save 10 thousand after the loan has been repaid. This is because when you have a loan, interest works against you because you have to pay these interest payments every month, but when you start saving money, the interest works for you and you get extra money every month just from it that you have invested or invested in it. When your total value is minus, you definitely have a bad feeling and every month trying to repay these credits, it seems that this debt is not even smaller. But when you start saving money, you will find that every time you add your account it becomes much thicker and your feeling will be much better than when you have to pay for the goods or services you have bought in the past.
If you don’t have the credit you will definitely offer them
When you succeed in repaying your loans or before you take them at all, you will definitely have a lot of different offers from banks, non-bank creditors and other institutions that will offer you to take out loans with very good interest payments. But when you have borrowed money, these offers will stop, but if you get rid of all the credits, then your credit rating will improve and you will start coming back to these deals again. That’s why when you don’t have the credit to stay up to these services and not take the money, it’s so difficult because they all offer you to get something now that you really can’t afford. So even when you repay all your credits you will have to be very patient and you should not be subject to these ads and the temptation of credit.
Credit is easier to pick up than to repay
And the last point, which must definitely be mentioned, but what may seem obvious is that it is easier to take credit than to repay. Even if you have managed to get rid of all your debts on these credit ads and this temptation will often be too big and you will not get stuck and borrow that money. But with every time you borrow and pay off the debt you will begin to realize that these services are not necessary for you and that it is much better to save money and then buy what you want. In this way, your satisfaction for the money you save will be much higher and you will be able to enjoy it more than taking out loans and then thinking and worrying about how you will repay them.