The interest rates may not be the lowest that this generation has seen, but they are still at an all time low. As lenders struggle to recover from the sub-prime disaster, the rates are holding strong. More companies are creating products to lure first time and repeat customers in through their doors. Before you agree to borrow you need to look at what is driving your decision. There are three financial sins that will bury you in debt if you let them control your choices.
LUST
Just because you "feel in love" with the house or the car (or what ever it was that caught your eye) doesn’t mean you need it or can afford it. Emotions can put you into dangerous financial situations. Take a few days to really consider what the purchase will do to you emotionally, physically and financially. If you still feel like it is the best option then emotions may not be the driving factor after all.
ENVY
Too many people have gotten in over their financial heads because they had to have what the people around them had. If you don’t know the financial situation of your neighbors then don’t try to mimic them. It could be that they are into debt up to their eyeballs. That is NOT something you want to copy in your own life. Instead of making decisions based on others try making decisions based on your needs (and wants) as well as your current financial situation.
PRIDE
It is important to "save face" for many people. Getting the bigger house or the better car proves that success is in the path. Financial decisions shouldn’t be based on making an impression but they should be based on the impression your current monetary situation makes in your bank accounts.
Make your decisions on wise finances not on out of control emotions.
Harry also writes for Low.com. Save money and get great deals on life, health, homeowners and auto insurance.
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