FREEBEE

Some people have financial intelligence. They are able to earn, save and spend. Some are stingy. Some live for the day. They think that somehow there will always be money to spend.

One of my relatives, an elderly person, always bought things on credit.  However, he never paid in full, in spite of the fact that he could. He always used to keep a part of the payment pending. This used to happen month after month.  At the end of the year, there was that month’s payment and twelve months’ small leftovers that had snowballed into a huge amount.  Adopting a last minute strategy, he would pawn his jewelry, and pay his debtors. Then he had to pay monthly interest on the pledged jewel.  

This was because he of his callous attitude. He used to think, “So what? Let them wait.” If there were a family functions, outside Chennai, he would borrow money, to attend the same. He never paid the lenders on time.  The habit of his kept him permanently in debt.

Another young friend was a victim of credit cards. He was so fascinated with materials; he used to buy things mindlessly.  He had 30 shirts, and 6 watches. He purchased the sixth watch, just because it was on a 25% discount.  With his purchases, exceeding his payment capacity, he became a defaulter and so could not get another credit card or loan from other banks in the future.

One more sufferer of credit facility, used to buy things like there was no tomorrow. However, he paid the minimum amount due, every month without fail. He used to spend half a day, every day making online minimum payments for things he never used nor needed. His fascination for laptops, mobiles, tablets, cars and outside dining, over years bought him neck deep into debt. He borrowed money from Peter to pay Paul. Finally, to settle the debtors, he had to sell a prime property.  He still has not changed, refusing to learn lessons even from his own experience.

Another family due to such extravagant habits has borrowed money from all the friends and relatives. They too have no intentions of living simple. For them, spending money on dresses, mobiles, restaurants, is second nature. Hope they wake up before they meet their nemesis. 

Credit cards, a substitute for cash, help in an emergency or as a convenience to pay later.  The word credit has been misunderstood. It does not mean a freebee.