Understanding Financial Needs in Families

A family is more than just a social unit — it's also an economic unit with shared goals, responsibilities, and challenges. Financial needs are an essential part of family life, influencing everything from education and healthcare to housing and emotional well-being. Managing these needs wisely is key to creating a stable and nurturing environment. 

 1. Basic Financial Needs of Families 

•  Families, regardless of size or structure, typically share a core set of financial needs: 
•  Housing: Paying rent or a mortgage, maintaining a safe and comfortable home. 
•  Food: Ensuring consistent access to nutritious meals for all family members. 
•  Healthcare: Covering routine medical visits, emergencies, prescriptions, and insurance. 
•  Education: Supporting school fees, books, tuition, and extracurricular activities. 
•  Transportation: Having reliable transportation for work, school, and daily errands.
• Savings and Emergency Funds: Being prepared for unexpected expenses like medical emergencies or job loss. 

 These essential needs form the foundation for a family’s financial security and long-term well-being. 

2. Financial Challenges Families Face

 

Many families struggle to meet their financial needs due to various challenges: 

•  Low or unstable income: Unemployment, underemployment, or jobs with no benefits can make budgeting very difficult. 
•  Debt: Credit card debt, student loans, and medical bills can quickly overwhelm a family. 
•  Rising living costs: Inflation in rent, food, and healthcare puts pressure on family budgets.
• Unexpected emergencies: Sudden illness, car trouble, or job loss can disrupt financial plans. 

 These challenges often lead to stress, tension, and strained relationships within the household. 

 3. Impact of Financial Stress on Families 

When financial needs are not met, it affects every aspect of family life: 

• Emotional well-being: Anxiety, depression, and conflict can arise due to money worries. 
•  Child development: Financial hardship may limit access to quality education, healthy food, and extracurriculars. 
•  Relationship health: Money issues are one of the leading causes of marital conflict and divorce. 

That’s why understanding and managing finances is not just about numbers — it’s about protecting the family’s emotional and social health. 

 4. Strategies for Managing Family Finances 

 Effective financial planning can ease stress and build long-term stability. Here are some strategies:

•  Budgeting: Tracking income and expenses helps families stay on top of their spending. Saving early: Even small, regular savings can build up over time for emergencies or goals. 
•  Insurance planning: Health, life, and home insurance protect against financial shocks. 
•  Financial education: Teaching children and adults money management skills can make a lasting difference. 
•  Seeking help: Financial advisors, Spiritual advisors, community programs, or government support can provide vital guidance and relief. 

 Making financial planning a family activity — involving children in age-appropriate ways — also helps instill lifelong money skills. 

 5. The Role of Communication 

 One of the most overlooked tools in managing financial needs is open communication. Families that pray and talk regularly about their financial goals, needs, and limitations tend to make better decisions and face fewer conflicts. Regular check-ins can prevent misunderstandings and foster unity. 

 Conclusion 

 Financial needs are an unavoidable part of family life, but with planning, communication, and support, families can overcome challenges and thrive. By recognizing the importance of managing money together, families can build a strong foundation for the future — one that supports not only their physical and spiritual

needs but also their dreams.
 

*Effective Debt Settlement: Strategies for Financial Relief*

Debt settlement is a popular method for addressing overwhelming financial obligations. It involves negotiating with creditors to reduce the total amount owed, potentially saving individuals substantial sums and easing their financial burden. However, achieving effective debt settlement requires a strategic approach, careful planning, and awareness of potential consequences. **Understanding Debt Settlement** Debt settlement typically involves negotiating with creditors to pay less than the full amount owed. This can be achieved through direct negotiation or with the assistance of a debt settlement company. The goal is to reach an agreement where the creditor accepts a lump-sum payment or a reduced total amount as full satisfaction of the debt. This method can be particularly useful for individuals struggling with unsecured debts, such as credit card balances or medical bills. **Key Strategies for Effective Debt Settlement** 1. **Assess Your Financial Situation**: Before initiating debt settlement, it’s crucial to understand your financial landscape. List all debts, including amounts owed, interest rates, and creditor contact information. Evaluate your income and expenses to determine how much you can reasonably afford to offer as a settlement. 2. **Negotiate Directly with Creditors**: If you choose to negotiate on your own, start by contacting creditors directly. Clearly explain your financial hardship and propose a reduced payment. Be prepared to provide documentation of your financial situation, such as income statements and expense reports. Creditor negotiation can be challenging, but persistence and clear communication can yield favorable results. 3. **Consider Professional Assistance**: Debt settlement companies can negotiate on your behalf, often leveraging their experience to secure better terms. Research potential companies thoroughly to avoid scams. Look for companies with good reputations, transparent fee structures, and certifications from professional associations. Be aware that using these services typically involves fees and can impact your credit score. 4. **Get Settlements in Writing**: Always obtain written confirmation of any settlement agreement. This documentation should detail the agreed-upon amount, payment terms, and the impact on your credit report. This step ensures that you have a clear record of the settlement and can protect yourself in case of disputes. 5. **Prepare for Tax Implications**: Forgiven debt might be considered taxable income by the IRS. Ensure you understand the potential tax consequences of any settled debt and consult a tax professional to prepare for any tax liabilities that may arise. 6. **Monitor Your Credit Report**: After settling debts, monitor your credit reports for accuracy. Ensure that creditors report the settled debts as “paid” or “settled” and that no further action is required. Regularly checking your credit reports can help you address any discrepancies or issues promptly. **Potential Drawbacks** While debt settlement can offer financial relief, it’s important to be aware of potential drawbacks. Settled debts can negatively impact your credit score, as they are often reported as settled rather than paid in full. Additionally, the process can take several months to years, during which time your creditworthiness might be affected. **Conclusion** Effective debt settlement requires a strategic approach, whether you handle negotiations independently or seek professional help. By carefully assessing your financial situation, negotiating effectively, and understanding the implications, you can work towards reducing your debt burden and achieving financial relief. Remember to stay informed, seek professional advice when needed, and remain diligent in managing your finances to avoid future debt issues.

Managing Your Finances: Key Strategies for Financial Health

Effective financial management is crucial for achieving both short-term stability and long-term wealth. Here are some fundamental strategies to help you manage your finances efficiently. 1. Create a Budget -The cornerstone of financial management is a well-structured budget. Begin by tracking your income and expenses to understand where your money goes. Categorize your spending into essentials (like rent and groceries) and non-essentials (like dining out and entertainment). Allocate specific amounts to each category and stick to them. Regularly reviewing and adjusting your budget ensures it reflects any changes in your financial situation. 2. Build an Emergency Fund - An emergency fund is a financial safety net for unexpected expenses such as medical bills or car repairs. Aim to save three to six months’ worth of living expenses in a separate, easily accessible account. This cushion prevents you from going into debt when emergencies arise and provides peace of mind. 3. Manage Debt Wisely-High-interest debt, such as credit card balances, can quickly spiral out of control. Prioritize paying off such debts by focusing on those with the highest interest rates first, a method known as the "avalanche" approach. Alternatively, you can tackle smaller debts first for psychological motivation, known as the "snowball" method. Avoid accumulating new debt by using credit cards sparingly and paying off balances in full each month. 4. Save for Retirement - Planning for retirement is essential, even if it seems distant. Contribute regularly to retirement accounts such as 401(k)s or IRAs. Take advantage of employer matching contributions if available, as this is essentially free money. The earlier you start saving, the more time your investments have to grow, thanks to the power of compound interest. 5. Invest Wisely - Investing allows your money to grow over time, but it requires careful planning. Diversify your investments to spread risk across various assets, such as stocks, bonds, and real estate. Research and consider your risk tolerance and investment goals before making decisions. Consulting a financial advisor can provide personalized advice based on your financial situation and objectives. 6. Monitor Your Credit Score - Your credit score affects your ability to secure loans and credit at favorable rates. Regularly check your credit report for errors and track your credit score’s progress. Pay your bills on time, keep credit card balances low, and avoid opening unnecessary credit accounts to maintain a healthy credit score. 7. Set Financial Goals - Establishing clear financial goals provides direction and motivation. Whether it’s saving for a home, funding a child’s education, or planning a vacation, define your objectives and create a plan to achieve them. Set both short-term goals, such as paying off a credit card, and long-term goals, such as saving for retirement. Monitor your progress and adjust your strategies as needed. 8. Educate Yourself - Financial literacy is crucial for making informed decisions. Continuously educate yourself about personal finance topics, including budgeting, investing, and debt management. Numerous resources, from books and online courses to financial news and podcasts, can help you stay informed and enhance your financial knowledge. 9. Review and Adjust Regularly - Your financial situation and goals can change over time. Regularly review your budget, savings, and investment plans to ensure they align with your current circumstances and objectives. Adjust as necessary to stay on track and respond to any changes in your life, such as a new job or significant expenses.

In summary, managing your finances effectively involves creating a budget, building an emergency fund, handling debt wisely, saving for retirement, investing prudently, monitoring your credit score, setting financial goals, educating yourself, and reviewing your financial plan regularly. By implementing these strategies, you can achieve greater financial stability and work towards your long-term financial goals.

"Ten Shocking yet common reasons why small businesses fail."

Small businesses are perhaps more common now than they were in previous years. Many people are now aspiring to own their own businesses, because of the uncertainty of the job market. Even those who have had jobs for long periods of time are trying to find what they consider a plan B, in the event that their long-term jobs don’t work out. Truth of the matter is that whatever happens, whether they remain employed or not, the bills still arrive every month. So if one desires to own any kind of assets, for the business or for themselves, then it is imperative that these bills be paid.

Many of these businesses are unable to stand the test of time and many fail a short time after the startup. The statistics of new businesses that fail in today’s society amounts to four out of ten that will not make it to five years. Some of the reasons why small businesses fail include:

• 1.       Inadequate funding
• 2.       Failure to plan
• 3.       Lack of proper structure
• 4.       Wrong choice of staff
• 5.       No proper accounting system
• 6.       Competition too strong, or underestimation of the competition
• 7.       lack of advertising
• 8.       Lack of vision for the company
• 9.       Poor management
• 10.   Poor Customer Service

The most common reason being number one on the list. Most businesses offer credit to customers, some of who will in turn experience hardships which results in their inability to pay for the goods or services that were extended to them on credit. This can cause the business to have a lot of cash tied up in creditors and hinder them from paying their bills when they fall due. Proper funding is important for any business and many people will start a business and invest their own funds. Many are unaware that funding is available, so they take the route that is commonly known to them.

The Business Funding Centers in your area offers information on how to secure funding for your small business on their website. Business owners can visit the site to see if they qualify to receive funding for their businesses. Business owners can search through a list of 581 Government programmes which offer funding to new businesses. If owners are unsure as to whether or not they need, or will qualify for funding, they can look at the list of recipients, read their success stories, or even browse the questions in the FAQ section. The resources that are provided can assist anyone who is interested in starting a new business, or business owners who are in need of a way to provide adequate funding for their cash-strapped businesses.

They can choose from a variety of programmes that can help them in their endeavor. Government programmes, grants and loans are available if the business qualifies. The first step is actually seeing if it qualifies for funding.

How to get more breaks as a business owner

 

How to get more breaks as a business owner

If you have ever wondered about the requirements of starting a small business, or getting a loan for a small business, then you have also wondered about tax breaks that are available from starting the business. Starting a business, or running one is one of the hardest tasks that could ever be undertaken. Owners of small businesses are usually under a lot of stress and are often called upon to make personal sacrifices for their businesses in order to make it a success. Even though they face challenges from finding the resources that they require, the ups and downs of the economy, and hiring and firing employees, they are still optimistic and resilient most of the time.

Securing a loan for starting a small business may not be a possibility for many people, but if that is the case, then they could look into securing grant funding from a variety of sources. Not many people are aware that government grants exist, but for many, securing one is based on certain criteria. There are some instances in which it is not possible to get a grant, but for those who have gotten one, it has been a great way to finance their businesses and enable them to get much needed tax breaks

If you, as a small business owner need information on how to get more breaks for your business, then you may visit the website of the Business Funding Centre near you. They are not affiliated with the government in any way, yet the site has valuable information on how to get tax breaks, or tax credits. It tells you how to become eligible for these breaks and just what type of breaks you are able to get for your business. This information can help you to make better, more informed decisions for your business.

On the site, you can use their funding finder, look at the different schemes, and look at the recipients of funding for their businesses. If you are unsure as to whether or not you will qualify, you may sign up and look at the funding schemes that you would qualify for. They have great resources that can assist any business owner and allow them to reap success in their endeavour.

Online Cash Advances are good when there is overdue credit debt

Do you have a budget that lists your monthly bills? Are you one of those people who repay your credit card debt, only to use the card to get cash advances online? Who is seeing your credit rating? It is your responsibility to be aware of exactly what is happening with your budget and expenses. Credit card suppliers are always on the lookout for new customers who wish to get a line of credit, or to retain their current customers and get them to use their cards instead of using another company’s. The main aim behind these creditors promoting the usage of their cards is that the more people who maintain a balance on their card, the more interest their company will earn on those balances.

Even if the rate of interest is small, it accumulates over time. Are you comfortable with knowing that you have an unpaid balance because you are able to afford the payments when they are due? 

Many credit card holders do not perceive this to be the power of having credit, but view it as having their spending power extended for a longer period. In the instances where there is an unexpected expense, it is one of the easiest things to pop out the plastic, pay and go your way. This is exactly why credit card companies rake in profits in the billions each year. Can you imagine what it would be like to have that in cardholders’ bank accounts?

Look closely at your credit card statements and see the exact amount that you have been charged for interest for just the current year. Can you see how much the small amounts become over time? Many people are complacent with their credit card bills. It is so serious, that they are no longer able to access it. If they forget to make payments, use the maximum amount on the credit card, or let the overdue balance be added to all of their other unpaid bills, it will steer their credit worthiness directly in line with getting online cash advances. If you are one of those who have a lot of outstanding debts, creditors may end up rejecting your application. 

You are considered high risk and will not qualify for other lending solutions. If a credit score plunges to a sub-prime category, or lower, the options to get money in an emergency will decline drastically. You are not able to access affordable loans, so your debt becomes overbearing. Even if you are still able to meet your obligations, credit bureaus will now place this overdue debt in the bad debt zone, where other loans are concerned. After this happens, any thoughts you had of getting emergency money will be offered at a higher interest rate. This is done because other types of loans are sourced at a higher interest rate.

This is not a debt that you can have for a long period of time, as you will end up paying an arm and a leg for interest. The earlier the debt is repaid, the less chances you’ll have of paying more for the loan. Many times, when applicants for loans access a loan that is unaffordable, they prove to be detrimental to their finances. The interest that is charged to the client is considered a profit for the company, so you will have to decide which coffers you would rather your money be placed into. If you plan to avoid debt for any period of time, then you will have to be prepared when unexpected debts encroach on your budget.

You have to make provision for unexpected debts, as these can wreak havoc on your budget. Don’t get complacent with your debts. If you want to maintain a good credit score, by all means, use the credit card, but be sure to repay the entire amount that is used. 

If you have expenses and can see no other way out, then your best bet would be online cash advances. With these, you are able to comfortably manage your debts. Pay attention to your finances, failure to do so can result in grave problems. Reduce your debts at all cost and open a savings account that is dedicated only to emergency situations. Your credit score is used to determine your credit worthiness, take an active interest in it now.

The Dangers Of Unpaid Debts

Is accumulated debt a part of your regular monthly expenses? Are you tired of paying credit card debts and yet cannot stop yourself from using it over and over again on things that you cannot afford? Do you resort to online cash advances too often? If you are in the habit of getting comfortable with your debts sitting on your budgeted expenses, it is time for you to wake up. 

Have you ever wondered why credit card companies are so keen on offering new line of credit to new or existing customers? Clearly, they are interested not in your benefit but their own business. Their prime motive in luring you to reach unpaid balances is to get as much interest as possible on the accrued credit amount. It doesn’t need much effort to understand that even a small sum of money when left unpaid can reach intimidating levels.

Plastic money always gives you a false sense of being in control of your finances In fact, many people do not even consider buying on credit card as credit at all! They consider it as an extended purchasing power. This sense of complacency might turn out to be very dangerous when left uncontrolled. 

The credit card companies must have been quite successful in drilling this sense of increased financial empowerment into their customers’ minds. How else can the billions of dollars of annual profit be explained? You can understand it too by doing simple math. Just go over your credit card statements and find out how much you have spent in paying interest alone. This, in fact, is the money that you could have saved. Imagine how all those dollars would have looked in your bank account!

However, leaving credit bills unpaid is detrimental not only to your savings but also to your future credit possibilities. Remember, the credit bureaus are watching. When they see too much of unpaid credit left in your name for a long period of time, this is a warning signal for them. Once that happens, getting any credit will become very difficult for you. You may still be able to manage it somehow, but that will cost you very high interest rate. The only way to stay away from further financial trouble is to pay off all these debt as fast as you can. 

If taking an online cash advance is the only viable solution you can think of in order to meet an expense, you really need to take a good look at your financial situation. Chances are, it is not in too good a shape. Unfortunately, it is too common for people to run into deeper financial trouble when they opt for fast online cash advance that they cannot afford to pay off. Remember, any debt that is left to sit on for too long is bound to take its toll on your overall financial situation.

It is true that using credit cards is part of increasing your credit score. However, that does not mean that you have to keep debt accumulating on your cards. That is far from being necessary. You should never ever get comfortable living with your debts. That is one good piece of advice that anyone can give you. Debt will not pay off on its own. You will need to take all the necessary measures to make that happen. 

A good place to begin is to take debts seriously and make diligent attempts to pay them off on time. Also, just think what will happen in case you need an emergency fund? Chances are, it will lead you into taking further loans and burying you deeper in debts. Take control of your finances and address the issues before it is too late.

Do you know your business credit score?

When starting a new business, knowing your business credit score is an essential aspect of running a small business. The business credit score, just like the personal one, will show the credit-worthiness of the business and enable the owners to get credit from different agencies.  The individual’s personal FICO score covers a range of 300 to 850, with 850 being the more sought after rate by creditors, while the business credit score goes from 0-100. Additional scores are offered by different entities and this helps the business to assess their risk tolerance. There are algorithms which are normally used by credit bureaus in calculating the credit score for a business. There is currently no standard set by the industry for business credit scores. This causes the scores to vary from one credit bureau to the next.

The reports, or scores, when assessed for a business, will include only accounts that are held under the name of the company. It does not include personal accounts. In many instances, before credit is extended to a business, the lenders, or anyone who extends credit will take into consideration, the credit worthiness of the owner as well. Free credit reports can be accessed from any of the credit bureaus that are available to the business owner, as well as personal credit scores are available from many issuers of credit cards. This service is not available for the credit score of a business. Business credit scores for your business and other businesses are public information, as long as it has been paid for.

Credit bureaus have their own methods of calculating the credit worthiness of the company. Many times the data that the bureaus receive is incorrect, as each collect their information and verify it in different ways. Giving the bureaus access to information that can be used to verify their information can eliminate the incorrect data that is handed to the business owner. Those businesses that have a low probability of  late payments, based on their assessment, is generally the businesses that can successfully secure funding.

A new business owner can also look into accessing funding for startups by visiting the different bureaus and checking out their resources. They can also look at the stories from entrepreneurs and gain access to different types of  funding by filling out their questionnaire online. There are different ways in which a business owner can gain grants and loans at a low interest rate. The first and most important step is to explore the options that are available to business owners and see if  a grant for a small business is a viable option for your business.

Credit Cards-Master Cards

MasterCard is one of the most accepted methods of payment issued worldwide. MasterCard has over 20,000 organizations who are members and is used by customers in over 210 countries. In excess of fifteen million transactions in over 180 currencies are processed in a single day using MasterCard.  There are many different issuers and banks which offer MasterCard as a way to send or receive payments both online and offline. The typical fees for a MasterCard can range from no annual fees in the first year to approximately $95 per annum. Most of the conditions attached to a MasterCard are redeemable only with excellent credit.

MasterCard comes both in debit or credit cards, with a debit card it is based solely on the use of your own funds, while on the credit card it is with the bank’s funds. MasterCard offers many different attractive benefits and rewards if it is used with responsibility. These benefits include fraud liability, which kicks in if or when your card gets lost or stolen. Travel emergency advance, which is just as the name suggests. In the event that you are unable to use your card while traveling for any reason, you are able to get an advance, and sort it out when you return.

These cards offer travel and accident insurance, Cash back, bonuses, cash rewards and you are able to apply for a MasterCard with no application fees whatsoever. It is better for you if your balance is paid in full each month it becomes due, as you can use the MasterCard to re-establish, build or rebuild your credit if the full amount is paid in a timely manner each month. It is also beneficial to you f you try to maintain your credit balance on the card below the minimum limit. When you close your account with a nil balance you are refunded your security deposit, if you had one. This is not the same with all issuers, and conditions may vary with each.

Buying on Credit

In a world that is heavily reliant on economics and personal finance on a global scale, it is necessary for people to have the availability of credit. Both individuals and businesses use credit to facilitate purchases that they would not have been able to afford in cash. Having access to credit can be either an advantage or a disadvantage, depending on whose perspective you look at it from. The ease that is currently experienced with accessing credit is proof that it is a necessary tool for people to be able to progress in life. According to the definition given by the Webster’s dictionary, credit is transferring goods and services in confidence. with an agreement to pay at a later date.

 Credit transactions began in colonial times. when it was only the privileged people who were able to access credit. Farmers were the main ones who needed credit on a regular basis to help with their livestock. There were no charges for accessing credit in those times, instead, the cost was directly added to the price of the loan products (Omar et al.). Consumers who make credit, and not cash purchases are major players in the economy. The ease of accessing credit also comes with the responsibility of being able to repay it on time and in full. Many people are able to access credit, but not all are able to repay their debt when it falls due. To this end, many are indebted to the lending institutions that afforded them the privilege of accessing the loan. Even the government has loans and if they are not paid, will also run into problems.

The interest on a loan is the major contender in the problems that are faced by borrowers. Many believe that after they have accessed credit, the prompt that they receive to repay the minimum balance is the only payment that they need to make. When the minimum balance is repaid, the interest continues to grow on the principal until it is also repaid. The public, government agencies, individuals and corporations are all users of credit (Roberts and Jones). In the world today, it is one of the most important methods used to facilitate growth. Credit, when it is properly used, gives us buying power for the items that are not easily afforded. Even though many abuse this finance option and end up in the “red”, not everyone will be as careless with their credit. If credit is managed properly, the ability to access it can grow and enable the people who access it to see amazing growth in their lives.

With the credit reporting requirements that have been in place in the US since the fifties, it has prompted the creation of global models for other countries who wish to do the same. It was reported that if credit is not used, or made available in an the economy, then that economy will not experience the amount of growth that countries who do the opposite experience. Many countries have not yet realized the benefits of having a healthy credit relationship with others. The credit history reporting mechanisms that are available to institutions that provide loans vary, according to the type of loan, the amount and the borrower’s repayment history (Cole). With these considerations in mind, one should not have a problem getting their credit approved.

Before the practices that are currently in place regarding loans, the information that was made available on a borrower’s delinquency rate, bankruptcy, etc., were the driving force behind credit approval or disapproval. This has changed drastically, as borrowers who pay on time and in full are now that force. If data is to be further translated, the countries that reported their negative credit history and caused the issuing of credit to be restricted, are now facing lower growth rates than the ones who give credit. The repayment history of borrowers, added to the responsible handling of their credit have increased the availability of credit to those people. They have seen major growth in their credit rating and have been able to access lines of credit that they would not have been able to access before.

When assessing their risks, companies use these individuals who are prompt payers, to do so. One of the benefits to be derived from paying up, is the increase of loans that are disbursed to socio-economic groups of people who would have problems accessing these loans otherwise (Roberts and Jones). It has also made different types of loans available to people of varying income levels and a reduction in the losses that would have been incurred because of bad debts. Companies have seen a reduction in their losses from loans disbursed because of their investigation and reporting capabilities. For an individual to get access to mortgages, cars, vacations, furniture, education and even weddings nowadays, they have to be able to access and repay credit that is extended to them.

Because of the rate at which credit is accessed on a daily basis, financial institutions have now diversified their portfolios to include loan products that have resulted in major profits. This has resulted in the increasing of credit that is owed for mortgage to 4.1 trillion as at December 1998 in lines of credit for home equity. Consumer credit such as personal loans, car loans and other types of individual loans were a whopping 1.33 trillion. By the ending of 2003 this figure went up to 9.3 trillion, combined with mortgage credit (Mann). Without this type of lending, institutions would not be able to realize a profit from the interest that is repaid with these loans.

Corporations that have experienced losses because of loans cover their risks by insuring those loans. If credit was not a major player in the economy, then these figures would have been significantly lower than they currently are. Many individuals are averse to taking loans and feel that they would rather use cash. In addition to the growth that can be experienced by accessing loans, it also allows the retention of funds that are saved by that individual. Another consideration is the spate of robberies that now plague the US. With access to credit, it eliminates the need for transporting large sums of cash. For almost forty years, the US Government has encouraged players in the credit industry to give their customers access to credit. They created public policies that have seen drastic increases in the credit that is available in the various sectors of the economy, including those who fall in the lower echelons of society.

In universities and colleges today, approximately 70 percent of the student population are enrolled because of their ability to access credit. In 1956 there were 29.7 million people who accessed credit and purchased their homes, in comparison, there were 75 million in 1998 (Cole). Based on data from the Federal Reserves website, the assets of financial corporations, which are bank credits, securities, leases, mortgages etc., grew from -6.0 billion in 2009 to 4 billion in 2014. If these figures are not proof of growth in the economy, then what is? Even further growth is estimated in the economy because of the availability of credit. With the increase of credit that is made available to individuals and corporations per capita, the cost to access these loans will also be increased.

If the reverse if true, then it can drastically impair a country’s growth. If one has the ability to avoid overspending or going above their credit limit, then the possibilities can be endless for their credit access potential. If it is used in a responsible way, credit can be a necessary and valuable tool that will allow businesses, countries and individuals to grow and improve themselves. It would be wise for intelligence, discipline and budgeting wisely. to play a big role in accessing credit. By evaluating one’s status, debt and expected income, the cost, and by keeping in mind the consequences to be faced by going over your limit, that person can be successful at monitoring their use of credit. Credit availability and globalization allows a country to grow and be successful.

It takes the effort of not just businesses, but also people, for a country to realize profits from extensive credit use. Choosing to buy on credit is an individual choice, which should be made responsibly. With greater responsibility comes increased access. If one handles their disbursement and use of credit wisely, then they will have access to even more credit. This can lead to a better quality of life, education and prospects for that individual. If credit is not accessed, on the other hand, then growth and prosperity is significantly lower for that individual. To sum it all up, it makes a lot of sense economically to buy things on credit.

Doing this will not only enable an individual to achieve what they want to in life, but will also allow them to keep their savings for an emergency. Waiting to save for what you want can result in you paying a higher price for the item. You can forget about all of the negative comments about buying things on credit, as most of the people who try to discourage them will have bought an item on credit even once in their life. There are negatives and positives in everything that we do, but buying on credit is a positive step.