No Guilt Zone: Evolving How We Think About Borrowing

Borrowing funds to make ends meet or to make large purchases is a common practice. So why do we often feel there is a stigma associated with getting a loan? It’s normal for people to rely on credit at some point in their lives to achieve a financial goal and then dutifully pay the loan back. Let’s shift from this narrow view of shame to a no guilt zone. How? By refocusing on informed decision-making and responsible borrowing.

Use Borrowing as a Tool

The times that we’ve needed to borrow credit are not events that should define us or be seen as something negative. Things happen in life that sometimes require more money than we may have at a specific time. In turn, we can try to change our perspective of borrowing to be situational and temporary.

For example, my car breaks down. I do not get my paycheck for 10 days and I’ve already used my previous paycheck for the month’s bills. In this situation, I need money to fix my vehicle that I just don’t have at this very moment. That doesn’t make me a bad person nor should I feel shame. A loan is a financial tool to help us cover a money gap, manage poor timing of expenses or just handle a surprise cost. If used wisely, they can be a good way to work through a less-than-ideal financial issue.

What Responsible Borrowing May Look Like

Responsible borrowing can look different depending on an individual’s viewpoint and financial need, however there are some tried and true guidelines that may help borrowers keep their experience on the positive side.

• Only borrow what you need and what you can realistically repay.
• Be informed about the expectations of your loan like APRs, fees, regulations, etc.
• Know your due date and make payments on time every time.
• Budget your loan payments into your financial plan.
• Remember to use your loan as a financial tool for progress.

Change the Financial Mindset

You can personally start to shift from the belief that borrowing money should induce feelings of guilt, stress, or anxiety. When you think of a loan as a financial tool to be used responsibly for a temporary problem, your mental gears can concentrate on how helpful it can be when money is tight. Always stay aware of what is expected from your lender and make choices that encourage positive credit reporting.

Realistic and Responsible Borrowing

Keep your financial feet planted firmly on the ground when it comes to loans and beliefs about them. Use loans practically and sensibly, and there will be nothing to feel guilty about especially when you stay informed, repay on time, and make good financial decisions.