Jakarta, Armfalcon.com – Your expenses ahead of Eid may indeed increase because there is an increase in food prices and other expenses. Do the anticipation from now, so you don’t use the paylater in the future.
The disbursement of holiday allowances (THR) can certainly be a driving force for every community to increase consumption patterns ahead of Eid. Without clear calculations, it is easy for someone to be tempted to use the paylater facility.
It is undeniable that, with a paylater, you can spend more this month than your financial ability.
But make no mistake that there are some disadvantages that you must be aware of right now regarding the use of paylaters ahead of Eid, here are the reviews.
Your financial burden is getting heavier
When you use a paylater, passive expenses will appear and you must pay them off.
How do you feel if you yourself already have other debts, say credit cards, mortgages, or other credit? It could be, the amount of your debt is becoming more and more and this has a big impact on your financial burden.
The ideal amount of debt repayments is a maximum of 30% of your total monthly income. More than that, of course it will make it difficult for you to meet your daily needs, save, and invest.
Your wealth is reduced
Know that ideally, a person has a net worth that continues to grow over time.
The existence of new debt will certainly reduce the value of your net (real) worth. Net worth is seen from the result of reducing total assets with total debt that has not been paid.
The greater the debt you have, the smaller the value of your wealth.
Far from being financially independent
With additional debt, there will be new obligations that you must pay. Therefore, the greater the debt that is owned, it will require someone to focus on paying it off first.
When debt is still a “priority” that you have to solve, it will be even more difficult for you to have time to design a financially free future.
Instead of following your passions or social pressures that demand you to be more consumptive, it would be nice to maintain your financial health while learning to sort out what your needs and wants are.
Are you ready for 2023 Loan debt is still piling up? Here’s the solution