4 Hard-to-Notice Bad Money Habits Borrowers are Guilty of

Some people tend to keep borrowing money often. You see them frequenting legitimate money lenders  to take out loans. 

For some people, they keep borrowing but cannot afford to keep up with repayments. Their credit scores go down as a result, but they still find a way to keep on borrowing. It becomes a stressful cycle.

Here are four examples of these bad money habits to avoid.

Using credit to buy things they cannot afford

Credit can be good. If people use loans and credit to buy assets, they can make money off of it. The income from the assets will pay off the loans used to purchase them. And after the loans have been repaid, the assets will continue to earn money for them.

On the other hand, if people use credit to buy things they cannot afford, credit becomes bad. They buy liabilities, which cost them money over time instead of earning money. Accumulating liabilities is bad for their financial health. With that, they rack up more and more debt. 

As a result, they cannot build wealth. Credit card companies and lenders are always chasing them. Their lifestyles are financially stressful.

Going over their budgets

Going over budget is another common money mistake that keeps people dependent on borrowing money. What if an emergency happens? What if they need to buy something important when they already ran out of money? 

That means they have to get a loan. Each time this happens, they borrow again and again. They get trapped in debt, resulting in financially stressful lifestyles.

Lifestyle inflation

Lifestyle inflation is when people’s expenses go up as their incomes increase. When they get a raise, they usually buy expensive things, go on expensive trips, and take on bigger loans thinking they can pay them back with their higher salaries. 

But financial freedom rarely happens for people who give into lifestyle inflation. All it does is bury them in debt. They may be earning more, but their lifestyles are more stressful financially.

Putting savings as an afterthought

Another bad money habit is putting savings last. People stuck in a debt trap often spend first and save what remains – if any money remains at all. If nothing is left, they are left with zero savings and no money to spend for emergencies. If a need arises, they have no choice but to take out loans.

If this cycle repeats month after month, year after year, they become trapped in debt. Their finances become a huge source of stress for their lifestyles.


You don’t want to be one of those people who constantly have to borrow money. Manage your money wisely, and you won’t trap yourself in debt. Spend only what you can afford, save, and live a thrifty life. 

If ever you do need a loan, get it from a licensed money lender in Chinatown. That way, you can get terms favourable to your financial situation, and repaying the loan won’t be too much of a burden on your finances.

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