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Why You Shouldn’t (Always) Be Afraid to Borrow Money

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In the world of personal finance, borrowing often gets a bad name. There is an important reason for this. Lots of people who are just setting out on their personal finance journey get weighed down by debt. This debt can take on many forms. Some people get it at the tail end of their education, with student loans that are hard to get rid of. Other people start to drown in credit card debt early and often. However debt accumulates, it’s not easy to get rid of.

Still, you can’t be afraid to borrow money at times in your life. Getting rid of debt can feel like it will take forever, however Payday in the UK can be a good emergency resource when you need money fast but can also pay it off soon thereafter. There are many other examples of borrowing terms that can be good for the borrower. We’ll talk about several below.


It’s important to invest in yourself. This kind of investment can take many forms. Some people do it when seeking out higher education. This is an example of a very worthwhile form of borrowing, as long as you get the most out of it. When people don’t take college seriously, they learn a few things, but they’re not actually prepared to pay off the debt they take on in the process. For people who want to get out of college and start earning real money, it’s important to make the most of the degree. For this kind of person, education can go on and on. It almost doesn’t matter if you achieve impressive degrees. Certification and even simple “head knowledge” can increase your qualification and confidence, putting you in line for many important earning opportunities in the future.

Some people borrow to buy a house. This is a great example of strong borrowing practice. A house is very expensive, more than most people can pay for all at once. To get into a home, it’s necessary for most people to take out a mortgage loan with a large lending institution. Fortunately, these loans are made affordable because these borrowers are almost always very careful about paying their loans back. They know that if they don’t pay these loans, they’ll lose their houses. Buying a house is a great reason to borrow money for many reasons. From a financial perspective, the money you pay back on your mortgage loan is stored in the form of equity. It’s still borrowing, but it’s also a great wealth building tool.

Some people know a lot about taking out strategic debt on credit cards. If you can put your routine expenses onto cards that give incredible perks and rewards, you can see a return on your money this way. Sometimes a credit card will offer cash back for certain kinds of purchases. You can think of this as an investment, as it brings annual returns just like an index fund (to put it simply).

There are lots of other ways to borrow. The good ways will allow you to improve your life and even save money. The bad ones will require you to go deeply into debt for the foreseeable future. Avoid these and you’ll set out on good investment behaviors for many years to come.