In Texas, there is the popular quote “big hat, no cattle.” Big hat refers to the grand and flashy things. When you wear a big hat, you are impressing about people that you are wealthy. But if you have a big hat, but don’t have cattle which refer to the foundation of money, then you are simply pretending to be wealthy with no sources to speak of. Today, this phenomenon is called keeping up with the Joneses.
Unfortunately, it is easier to acquire a big hat than cattle. You can charge everything to your credit card and you can call those expensive things you acquire to be your status symbol. You feel wealthy just because you have things to show for it. But acquiring cattle (wealth) takes a lot of conscious effort. You need to manage it properly, grow and invest it. Sooner or later, the cattle multiply and you can now afford the big hat.
If you can’t manage your money, you don’t want to have the big hat or become the Joneses. They can afford the things they believe they can but they also have to go into debt for them. From there, it’s a downward spiral for your finances. Debt has become normal in the modern society, but if you limit the use of debt for urgent and basic needs, then you’re better off than the Joneses, financially.
If you should go into debt, say when you take loans with bad credit, stop for a second and assess if there is a real need for it. Debts have become so glamorized due to tempting credit card offers, but you need to trudge carefully. If you don’t want to become one of the Joneses, don’t use loans with bad credit to buy flashy new things and impress the neighbors. A better way to use loans with bad credit would be to spend it on basic things, like food, shelter, health and education. Even if you don’t have the grandest house in the neighborhood, but believe that it is safe and comfortable enough to live in without the added burden of unnecessary debt, then it is also easy to believe that you sleep better at night too.
There are other purposeful and useful things that you can spend loans with bad credit on. You can use loans with bad credit to get your car repaired, instead of refinancing a brand new one that will lock you into auto loan debt for the years to come. You can also use it to pay for urgent school expenses and help secure your child’s education. Loans with bad credit are even useful for healthcare and medical expenses.
With that said, you should know now that while loans with bad credit can help you buy flashy things, you would feel more secured financially if you use loans with bad credit for things that truly matter. Be careful with loans with bad credit and don’t get tempted with all the hype about how normal debt is.
Instead, become more reasonable and realistic with your finances and take advantage of loans with bad credit only when you truly need them, not when you want them. Doing so lessens the financial complications that loans and debts can bring. It also allows you to manage your finances more carefully and easily.