Five Aspects Of Your Lifestyle That Shape Your Borrowing Habits


Borrowing is a way for people to get financial aid to afford a wide variety of things, whether it’s needs such as food or medicine, or goals such as a home, a car, or investments. And the reason why you borrow from an authorised money lender depends on your lifestyle. Here are the five aspects that affect it: 

1. Attitude Towards Debt

Debt attitude is a critical aspect that influences one’s borrowing approach. Many factors shape this, such as family upbringing and community and cultural beliefs. Those from cultures or families that view debt negatively may adopt a cautious approach to borrowing. On the other hand, people who have grown up in debt-tolerant cultures find it easier to accept debt as part of life and manage it properly. 

For example, if you were raised to avoid debt, you’ll be cautious about loans and be more inclined to save up for a purchase instead of borrowing. On the other hand, if you were taught early on to see borrowing as a tool to be used responsibly, you’ll realize early on that it could be a way to own a home, start a business, or invest. 

2. Income Stability

Having a steady job helps a lot when you think about borrowing money. If you are sure you get a regular paycheck, you’ll likely feel more confident when borrowing money for things you currently don’t have the cash for. With a constant flow of money, you believe you can pay off that debt without worrying too much about sudden dips in your earnings.

If your money flow isn’t steady or sure, you might be more careful with taking out loans. Maybe you are self-employed, have a small business, work in an industry with seasonal fluctuations. In these situations, you are likely to think twice before taking on debt because you might struggle to keep up with loan payments during lean months.

3. Spending And Saving Habits

Are you the type of person who keeps a close eye on your finances, and knows when to save up and purchase something? If so, then you’re less likely to borrow money because you believe it’s better to draw from your savings than look for alternative sources of funds. However, if you’d rather have on hand the things you want and would rather pay for them over time than spend a good chunk of your salary or savings, you’d probably prefer borrowing.

4. Financial Goals

These should serve as the reason why you borrow money in the first place. Maybe you have this dream of comfortably retiring, owning your own home, or creating a safety net for rainy days. Or maybe you want all of them. If you keep those goals in mind, you’ll be more likely to borrow prudently and maintain a good credit score.  

The same is true if your financial goal is to start your own business. The idea of borrowing for a venture with no certainty of success can be worrying But through careful planning, it could be the key that allows you to achieve that dream. 

5. Credit History and Score

Your good credit history and credit score reflect your financial responsibility. Lenders will consider you a reliable borrower if you have a sound credit history and credit score. This means you would qualify for loans with lower interest rates and better terms. 

On the other hand, if you do not maintain your credit history properly or your credit score is low, lenders may consider you a high-risk borrower. This could lead to them giving you unfavorable loan conditions, raising your interest rate significantly, or even denying your application. If you have a low credit score, borrowing opportunities are limited, and it costs more when funds are required. In other words, it is a red flag for lenders.


Your perception of debt shapes how you borrow money. Some people try to avoid debt, while others view it as a helpful tool. Knowing your attitude and lifestyle can help you make wise borrowing decisions. By aligning your financial choices with your goals and values, you can ensure they support your aspirations.

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