While constantly being hypnotized to buy one item after another, we must put some limit to our spending spree.
No matter how good it feels to splurge on these things, we must resist the temptation by repeating this mantra in mind: Control of Debt.
So what exactly is control of debt? It is about limiting your expenses to your corresponding means of living.
If you earn a six-figure salary per month then you might be entitled to a dinner of wine and caviar.
Not that I am stereotyping but the same fare will not suit the modest salary of an entry-level employee.
If the employee aspires to dine with caviar, then it entails saving up for the desired item because this person can not afford to spend too much.
Especially, spending beyond his means.
If you are an ordinary employee with only a modest salary to keep you and your family surviving until the next paycheck comes, you should keep in mind that control of debt is the next best advice that is worthy enough to follow.
Creditors will be looking at this aspect of your credit report.
In a way, if you spend beyond your means, the lenders will take second thoughts before allowing you to get a loan.
Spending beyond your means is a sign that you might be making your way deeper and deeper into debt.
Take this scenario for example: Suppose there were two of you applying for a loan and the lender told both of you that he will only approve one application.
The income is a factor to consider for the lender.
Having checked the monthly salaries of both of your applicants, the lender sees that you have a comparatively lower paycheck than the other applicant.
You might be in trouble now.
Chances are, the applicant with the greater paycheck will be chosen.
But we have analyzed only one factor so far.
The other applicant may have a bigger pay than you but if the lender sees that you are practically living the life of a money-conscious individual, then he might just reconsider your application.
Looking at your debt control status which is the report on how your spending habits (what things you splurge your money on and if this is compatible with your supposed lifestyle - with the money you are earning).
Remember that there are ways for you to make yourself saleable to prospective lenders.
Review the factors included in loan assessment and find out in which parameters do you have an advantage.
No matter how good it feels to splurge on these things, we must resist the temptation by repeating this mantra in mind: Control of Debt.
So what exactly is control of debt? It is about limiting your expenses to your corresponding means of living.
If you earn a six-figure salary per month then you might be entitled to a dinner of wine and caviar.
Not that I am stereotyping but the same fare will not suit the modest salary of an entry-level employee.
If the employee aspires to dine with caviar, then it entails saving up for the desired item because this person can not afford to spend too much.
Especially, spending beyond his means.
If you are an ordinary employee with only a modest salary to keep you and your family surviving until the next paycheck comes, you should keep in mind that control of debt is the next best advice that is worthy enough to follow.
Creditors will be looking at this aspect of your credit report.
In a way, if you spend beyond your means, the lenders will take second thoughts before allowing you to get a loan.
Spending beyond your means is a sign that you might be making your way deeper and deeper into debt.
Take this scenario for example: Suppose there were two of you applying for a loan and the lender told both of you that he will only approve one application.
The income is a factor to consider for the lender.
Having checked the monthly salaries of both of your applicants, the lender sees that you have a comparatively lower paycheck than the other applicant.
You might be in trouble now.
Chances are, the applicant with the greater paycheck will be chosen.
But we have analyzed only one factor so far.
The other applicant may have a bigger pay than you but if the lender sees that you are practically living the life of a money-conscious individual, then he might just reconsider your application.
Looking at your debt control status which is the report on how your spending habits (what things you splurge your money on and if this is compatible with your supposed lifestyle - with the money you are earning).
Remember that there are ways for you to make yourself saleable to prospective lenders.
Review the factors included in loan assessment and find out in which parameters do you have an advantage.