You know that aunty, who won’t stop talking about getting you married? Or the old man down the street who frowns at you every time you pass his house? How about that young lad who always has his headphones on and doesn’t seem to notice anything going on around him? Or the whiny guy at your work-place? Maybe the girl who always seems to have the latest car, gadgets and fashion?
We all know such characters around us. And their attitude towards loans differs just as much as their outlook on life does.
Find out which category you belong to.
Their principle is: “If you can’t afford it, don’t buy it.” They never opt for a loan. They consider taking a loan as the second worst thing in their life. Of course, the first worst thing for anyone is your pizza arriving stone cold.
They are very good at managing their income and expenses. Even though their principle will keep them out of financial trouble, they never take risks. Their financial graph is always a straight line with a rare dip or rise.
They normally buy their first home in their late 40’s. Ironically, that’s the age when people start worrying about a lot of other financial outflows. It all gets clubbed together and that’s the reason why the old man on your street is so grumpy.
The Smart ‘uns
These people look at loans as boons. They know how to utilize the loans effectively. They get business loans to start a new one or enrich their existing business. They make use of home loans to buy their dream home at a young age, get tax benefits out of it and sell it when the real estate booms. They keep multiple credit cards to avail the right offers.
They know precisely how much to borrow from banks and when exactly to repay it. They always do their math and are good at getting the best interest rates. They treat money well and vice-versa, which is why the fashionista girl doesn’t seem to run out of money.
They get loans for everything — education, bike, car, house, business, vacation without considering exactly how they’d manage all of them. They probably get a loan for their wedding as well, visiting bank websites way more than matrimonial ones.
Eventually all the loans pile up and become too much to handle and the Jugglers spontaneously combust! We’re kidding. But the debt they fall into just as easily takes everything away from them. The young lad is surely on his way to becoming a Juggler, what with the newer generations wanting everything in their hands right away.
These are the people who get loans, start feeling very antsy about their debts, and want to close all their loans as quickly as possible. And they worry about every aspect of their loans.
“Do I convert from a floating to fixed interest rate now? How would I repay my debts if I lose my job? What if the property I bought depreciates in value?”
When they hurry the repayment, they end up having less or no cash in hand, having forgotten to worry about saving. There’s nothing left to invest in something new or upgrade their existing business. So they end up applying for another loan and the cycle begins all over again.
You might have heard the whiner in your office wondering aloud about his loans as well.
They are the Rahul Dravids of finance management. They spend too much time analyzing the loan cover to cover before acting on it, just like Dravid takes his time at the crease reading the pitch before working his magic.
They might waste a lot of time, but end up saving money as well.
They always keep an eye on the interest rates offered by all banks and keep comparing them to find the best one. They usually have all the data at their finger-tips. They probably know more than the bank employees about offers. In-depth analysis is their zing!
Your annoying aunty might know about loans just as much as she knows about every detail of your life.
So which category did you find yourself under? We really hope you aren’t stressing out about any of your loans.
Also, next time you meet the annoying aunty, run like never before. Unless you do want to get married of course. If you are the aunty, sorry aunty-ji!