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Ever The Same: 5 Bad Habits Many Borrowers Relapse Into



Ever The Same: 5 Bad Habits Many Borrowers Relapse Into

Borrowers can always fall victim to bad money habits. These only drain their income, forcing them to keep coming back to instant money lenders to borrow more. The vicious cycle of borrowing can leave them financially ruined.

If you want to avoid this kind of stress, take note of these five bad habits borrowers often relapse into.

Not budgeting

The worst habit that problematic borrowers have is failing to budget their money. Creating a budget is one of the most basic money management techniques. It lets people know exactly where all of their money is going.

If all of a person’s funds are designated towards useful purposes, no money will go to waste. People with budgets are less likely to need loans often than those who do not budget.

Borrowing too much

People who borrow more than what they need are only straining their finances. This means they both have a higher amount to pay back as well as more interest to pay. Because of the large amount, they will take longer to repay the loan in full. Consequently, they will end up paying more interest as well.

The best way is to borrow only what they need, and no more.

Using another loan to pay back a previous loan

Some people take out an additional loan when they can no longer afford to pay one loan. They then would use the second loan to pay back the first loan. 

What this does is put more stress on their finances. Instead of only having one loan to pay back, they now have two. Moreover, this practise lowers their credit scores, making it harder for them to apply for future loans.

Living above their means

People who spend more than they earn will always end up needing extra money. Mathematically, if their expenses are greater than their income, their cashflow is always negative. That means they will always lack money for their needs.

Instead, if they do the opposite and live below their means, they will be able to get out of debt faster. By spending less than what they earn, they will always have some money remaining each month.

Being unprepared for emergencies

Problematic borrowers are also often financially unprepared for emergencies. Things like sudden hospitalisation, a major home repair, or job loss can bite off a huge chunk of their finances in an instant. Some people cannot afford these emergencies, so they have no choice but to borrow money. 

The best way to prevent this problem is by building an emergency fund. With three to six months’ worth of regular income in a separate bank account, borrowers can have the money they need to cover emergencies.


Bad money habits can destroy your future and set you up for a life of stress, worry, and misery. Avoid the five common bad habits above, and you will be on your way to financial freedom. This way, taking out loans from lenders like Soon Seng Credit will no longer be a burden, but a tool for building wealth.