Our mindset or the way that we think about certain things can have a huge bearing upon how we handle those situations and what the outcome of a particular situation will be. This is even more important when it comes to things like borrowing money because the way that we think about how we will handle them will define how successfully we are able to repay them and retain our credit score in the clear. Here are some very common mindset mistakes that people do when getting loans that eventually act as barriers to financial freedom and even lead to financial crisis.
If I don’t pay back for a while, my loan will disappear
If you really think that financial institutions and other entities that are lending you money would do so without a backup or guarantee that they will be able to get the money from you, you are mistaken. These people thrive on the business of lending cash and they know exactly what they are doing. Australian debt recovery is there for a big reason and they will track you down and keep contacting you if you do not pay up on time. The more that you evade without paying your loan, the more your credit rating will suffer ad the more the interest will get piled on accruing a rather large sum of money that you must repay legally. If you do not do so you will be taken to courts which means that there will be even more expenses coming your way.
Since I’m getting a loan, I might as well get a bit extra for…
No. do not get a bit extra and definitely do not think this way because when the online debt collection team gives you ten calls a day everyday asking you why you are not paying back your loan and when you feel the need to run and hide from your mobile, you will regret that you ever even had this thought. Many people justify getting a bigger amount than what they actually need by saying that since they will be paying back the loan anyway, they can take a little bit extra for something that is not an emergency. Doing this will pile up the bills for you and throw you under even more financial stress so steer clear.
Banks and organizations are too much trouble
May be they are strict and rigid but they are also very reputable and reliable. They will not scam or try to rip you off. What accepted and recognized companies would want is a business transaction fair and square where you get what you want and they get their cash back as well. Therefore, in such cases, even if you contact them to say that you are struggling to repay the loan, they will work with you and even look at lowering the premium so that they can get back the cash and you can be free of your loan. Loan sharks on the other hand are a very different story.