Take loans and credits wisely, but how do you do it?

Indebtedness, therefore, is an addiction to the lender or lender, in other words, a manifestation of such modern slavery. It probably only differs in that a person who deliberately indebted himself voluntarily falls into slavery. Can this captivity be avoided? Of course, spending less than we earn.

But these days it is difficult to spend less than we earn because we use a different form of money structured so that it can be spent without control. And so some people apply this principle:

“Money must be kept short”


And of course they keep them that way. Short. They get a salary and do not even know how it spreads quickly.

The resulting financial holes are clogged first with one loan, then with the other, then if there is no repayment installment, a payday loan is taken, followed by the next one. In this way, the loop closes, often ending in tremendous stress, home quarrels, sometimes suicide.

So why do we incur debts and then fail to pay you back?

So why do we incur debts and then fail to pay you back?

Most people are completely ignorant in the field of financial knowledge. Instead of trying to understand economic principles, e.g. the cost components of loans or borrowings, they focus primarily on ads that show a very low interest rate. But nobody reads what is below in small letters. So what if the interest rate is low, but there is a high commission, an additional insurance cost.

Further, there are other fees, such as the cost of reminders in the event of late repayments, commissions for earlier repayment of all or part of the debt. In the case of non-bank loans, everyone also focuses on interest, although in this case it is the least important.

The high cost of the loan is because of administrative fees. They are because in the event of early repayment, capital and interest are settled, the administrative fee is not refundable.

When entering into loan or loan agreements

When entering into loan or loan agreements

borrowers often assume that they will be able to pay the installments based on future income. They believe that they will always be healthy, they will not lose their jobs, their wages will not decrease, but they will increase. I remember a few years ago, employees of the Be┼échatów Power Plant or Mine were waiting for the time when they would receive 13 and 14 salaries. This additional income allowed them to take much higher loans, because the average income from the last 3 months gave a high basis.

In this way they were indebted to power. And when the crisis occurred, the rules of remuneration changed, many fell into financial trouble and debt collection.
Because they led to an imbalance. They had such high installments that they could not afford to make a financial pillow that would allow them to move easily into a more difficult period.