Avoid Loans And Your Future Will Thank You

Illustration by Gabriel Gatica.

Loans become a hot topic once as we grow older. Whether it’s for a car, school or credit cards, young adults are encouraged to take them out with a “sow now, reap later” mindset. Not only that, they often tell us that if we invest now, we can repay them as we will likely be earning much more than we were when we first borrowed. Of course this is the ultimate goal, but it may not be a future reality for everyone.

Society often views loans as the cornerstone for opportunities, but what if it’s the exact opposite? Many studies have shown the psychological, physical and financial impact that loans can have in an individual’s life. 

Psychologically, being in debt affects mental well being. Oftentimes, individuals turn to loan sharks because they may not have access to a loan otherwise. Studies have shown that those who are indebted to loan sharks have high levels of depression and stress. This is no surprise when statistics show that college students leave school with an average of $28,400 in loans—and it only increases when we account for the accumulating interest.

Physically, it has been observed that loans can cause high blood pressure and hypertension. This is no surprise because these are also side effects of stress. In order to pay off loans, many resort to working longer hours, with no rest and slaving away, leading to physical hindrances such as weight loss, weight gain, or sleep deprivation.

Financially, when dealing with loans, a huge toll is taken on your finances. When we can’t make those monthly payments, what happens? Your credit suffers, your paychecks are subtracted, and your future is put on hold. It impacts your ability to buy a house, to get married, or even aid your future children financially.

Ultimately, loans are viewed as inevitable, but are they really? Sometimes, we want everything as soon as possible—but what if we delayed gratification? If we put education or that dream house on hold until we’ve accumulated the money we need to reach our goals, instead of depending on the government and private money, we may find ourselves in a happier, more peaceful place.

I know the circumstances aren’t always that simple, but if we can put the hard work in to avoid loans now, our future will thank us later.

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