Why we’ve always been a nation of borrowers.
The idea of borrowing money isn’t modern. We don’t all have the same start in life and being able to borrow money is one of the key factors in being able to change your situation and move on to something new. Of course, not all debt is good – borrowing what you can’t afford to repay creates problems for you, your family, for the lender and for everyone else if you end up with a judgment against you. But if you’re borrowing responsibly then you’re taking advantage of an age-old tool for building a better life.
Borrowing creates value
When we borrow we’re often able to create value from that borrowing, whether that’s cash value or something less tangible. So, for example, borrowing a small business loan could enable you to grow a profitable company that creates jobs for a local community, as well as providing you with an income. Borrowing to fund education gives someone the opportunity to cover the cost of course fees at university – which might otherwise have been out of reach. This, in turn, creates the next generation of innovators, creatives, thinkers and problem solvers who go out into the world and make a difference.
So, who really benefits from borrowing, and how?
- Buyers who can get a mortgage to fund a purchase
- Landlords who want to create a buy-to-let business
- Students who need to pay for education
- Small business owners looking to fund stock/marketing/development
- Homeowners who want to add value to their property
- Communities that want to develop new local centres
- Families who need to buy a car
- Couples looking to cover the cost of a wedding
- Pet owners with vet bills to cover
These are just a few of the ways in which borrowing benefits many of us. And of course, the more successful our businesses, students, property owners and families are, the more we all benefit from a more positive and better functioning economy.
You can move on in life
Borrowing comes in to play in so many areas of our lives. For example, car finance or personal loans, mortgages or short term finance such as guarantor loans . Each of these might have a different purpose – to have a car to drive, a roof over your head, or the cash to cover an unexpected bill until our salary is paid. However, they all have one thing in common and that’s allowing you to move past something that would otherwise have been an obstacle. Having the use of a car might enable you to take your dream job in the next town. Maybe borrowing finally allows you to leave behind a history of awful landlords and costly renting. Whatever the obstacles you’ve faced, borrowing can often offer a work around that your own income wouldn’t have provided.
Borrowing is a good lesson in life skills
Borrowing can teach us many things, from a long-term commitment, to learning how to budget and manage money to meet repayments. Most of all it teaches an understanding of responsibility and how to make money work for you.