While financial experts view borrowing money as negative to consumers, the famous psychotherapist and author, Dr. Charles Richards views the opposite. In fact, he defines borrowing money and installment loans as “an evolutionary process of personal growth and development, and understanding what drives us to take on loans helps create positive responses and a better relationship with our finances.”
According to Dr. Charles Richards, borrowing money and installment loans have the following benefits to the consumers:
1. It helps redirect negative behaviors to more positive choices. According to Dr. Richards, the way from poverty to financial health and freedom is not easy. It usually involves responsibility, goal setting and the replacement of fear and desperation with examination and communication. This involves sitting down and looking at your budget, preferably with a trained professional who can explain each aspect of your budget and help you come to the right decision on how to handle your finances. Borrowing money helps boost the morale of consumers by having an alternative option when faced with a financial difficulty.
2. It helps consumers to value personal financial freedom. The pressure to repay borrowed money or installment loans enables a consumer to value saving for rainy days. Consumers learn what it means to save for something they really want and to establish goals when repaying debt responsibly. Also, it develops a desire in consumers to move ahead in life and not be stuck borrowing money and repaying numerous installment loans.
3. It allows a consumer to achieve personal responsibility and financial independence. Borrowing money including installment loans, allows a consumer to utilize money to meet important goals. Also, it helps consumers approach debt in a responsible manner. Borrowing develops a deeper relationship with money by improving one’s personal self-esteem and independence.
4. It helps consumers achieve a financial goal. Most lenders of installment loans have a worksheet that examines their consumers financial picture. In contrast to critics of this industry, lenders help their consumers achieve financial goals in order to lessen the burden when repaying the loan. They sit down and get to know their consumer, one on one, by evaluating their circumstances, lifestyle, employment history, and their individual needs. They outline a budget plan that works for the consumer.
5. It helps people establish good credit, making a good impact on the country’s financial stability. It is easy to see that banks are very strict with requirements needed to get a loan, especially for someone with a bad credit score. But through borrowing money from installment loans, people with bad credit are given the opportunity to improve their credit scores by repaying the debt on time. In addition, small personal loans, such as installment loans, aid people in these tough financial times. With the help of these loans, people can have an option to turn to when in need of immediate cash.
The danger in borrowing comes when lenders take advantage of the consumers financial woes by creating loans with payments and fees that are difficult to repay. On the brighter side, borrowing money develops good morale among consumers. The key is choosing the right lender and repaying the loan responsibly.