|Pros of Borrowing Money||Cons of Borrowing Money|
|You can buy things you would normally not be able to purchase||Debt can lead to a loss of freedom |
|You get what you want earlier||You will end up paying more money in the end|
|More incentive to be responsible with your money||If you default bad things happen|
|You can raise your credit score||If you borrow from family and friends it can cause TONS of problems|
Pros of Borrowing Money
- You can buy things you would not be able to purchase normally. Whether you use that wisely or not is another debate entirely, (No, borrowing money to buy a boat when you’re barely scrape by is generally not a wise decision!)
- You convert your earnings into a material (car, house, education, etc.) earlier. This can be especially advantageous in cases such as owning a home or education which are in essence investments and will make you more money, in the long run, recouping the borrowed amount.
- You have more incentive to be responsible with your money. Being in debt can be a blessing in disguise as you are less likely to waste money since you have a legally binding obligation to pay the money back.
- You can raise your credit score. If you pay your loan back properly, making it easier AND CHEAPER to get future loans or deals!
Cons of Borrowing Money
- Debt means loss of freedom. Want to buy that nice new car? Sorry, you still owe over $10,000 on your old one and you can’t trade it in for enough yet. :/
- If you default on the loan, bad things happen. Let’s just leave it at that…
- You’ll end up paying more money in the end. Unless you have a loan with no interest or fees, in which case, can you hook me up ???
- It can be seen as “weak” or that you are taking advantage of someone, especially if you are borrowing money from family or friends. Many people like to be self-sufficient financially, so be prepared to deal with disagreement from others about your choices to borrow money.
- Legal hoops are no fun to jump through, and unfortunately, most lending and borrowing come with more hoops than a circus act!…
"Our goal is to help the world make decisions with a list of Pros and Cons. We invite all to add to our lists to help others make the most educated decision possible. We are all in this world together to help each other and learn from what others have learned from their lives journey." - Pros and Cons Team
Written By: Kevin