Okay, so you are short on cash, and are considering borrowing money Visit Credit Excel Singapore. But should you?

Being financially responsible is extremely important for your long-term well being. Taking on debt, no matter how small, is no joke. But sometimes there is simply no other way. So what is a true financial emergency?

Fake Financial Emergencies

First, let’s take a closer look at situations where you might have an immense desire to spend money and feel like you are short on cash, but that do not warrant borrowing money.

These situations boil down to consumerism. Say, you saw your friend’s travel pictures on Facebook, and now you want to go on a trip like that too. Or your friends invited you to a restaurant that you really want to
visit, but can’t afford. Or maybe you just visited the Apple store and want the latest gadget. You really, really want to spend money you don’t have.But should you?

Absolutely not. Spending money you don’t have is the path to a terrible financial situation. It’s the definition of being financially irresponsible. You need to become okay with the fact that you can’t afford some of your desires. It’s simply a part of being an adult.

True Financial Emergencies

However, make no mistake, there are situations in which borrowing money is the only option, and the right thing to do. What are they?

It all boils down to one of these two things:

  • Career Interruption

Career interruption means losing your ability to make money for a certain period of time. It can be due to job loss, sickness, relocation, etc. Of course, ideally, you should have savings for that. However, if getting back to work takes longer than you expected, your savings might run out. Borrowing money to keep your head above the water is justified in such a case.

  • Unexpected Bills

Things happen. Your car might break down, you might get into an accident and acquire medical bills, your house might catch on fire… Ideally, you should have insurance for that, but insurance doesn’t always cover everything. When you are faced with an unexpected bill that you can’t afford to pay, borrowing money can be your only option, and in that situation it’s an option that you should take.

These are pretty much the only cases in which you should be borrowing money if you want to be financially responsible.

Visit Credit Excel In Singapore

Are you facing an interruption in your career or an unexpected bill, but don’t know where you can borrow money? Here at Credit Excel Capital they are always ready to help. Visit their office in Singapore and they will help you figure out what your options are.