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Bad Traits That Cause Borrowers To Lose Money From Loans

We’ve all wished for that magic money tree at some point in our lives. But since those are about as real as unicorns, sometimes borrowing a bit of cash is the only way to handle those big expenses or unexpected emergencies.

While loans can be lifesavers, some seriously bad habits can turn them into financial quicksand. Let’s break down some of the biggest offenders that might cost you more than you bargained for.

1. The Impulsive Shopper

You know this type. They see a shiny new gadget, a sale sign flashing like a beacon, and their impulse control flies out the window. “I need it NOW!” they shriek, as they whip out the credit card for a loan they probably can’t afford.

The problem with impulsive shopping is that it’s driven by emotion, not logic. You don’t consider if you can pay it back – like a kid in a candy store, grabbing everything in sight.

But here’s a news flash: candy tastes delicious but rots your teeth. Similarly, buying on impulse might give you a brief high, but the loan pain lasts way longer.

2. The “Minimum Payment” Master

Meet the minimum payment champion! They see that tiny ‘minimum’ amount on their loan bill from a trusted money lender in Singapore and rejoice – they’ve outsmarted the system. “Look at me, being frugal!” they declare.

But what they don’t get is that minimum payments are a trap. Like walking through quicksand, it’ll take you forever to get free, and you’ll spend way more in the process.

Why? Because most of your minimum payment barely makes a dent in the actual loan amount. Instead, it mostly covers the interest and you end up paying lots of money over a long, long time for something that may not be worth it anymore.

3. The “Borrow From Peter to Pay Paul” Bandit

This borrower is a master juggler – unfortunately, they’re juggling burning chainsaws instead of balls. They’re always taking out new loans to pay off old ones, like robbing one bank to pay back a different bank you robbed last week. Eventually, you run out of banks… and the whole thing collapses.

This habit shows a lack of budgeting skills and a whole lotta denial.  If you can’t pay your existing debts, more debt isn’t the answer.

4. The “Terms and Conditions? Who Needs ‘Em?” Skipper

These folks treat the fine print in a loan agreement like the instructions for a new microwave – boring and irrelevant. “Meh, who cares about the interest rate? Sign me up!” they say. HUGE mistake.

The terms and conditions are where they hide the other important stuff –  late fees, prepayment penalties, and what happens if you miss a payment (spoiler alert: it ain’t pretty). Not reading this is like signing up for a mystery adventure where the destination might be a financial black hole.

5. The “Shiny Object” Chaser

These borrowers get lured in by low introductory rates or flashy promises. “Zero per cent interest for 12 months? Sign me up!” But they ignore the part about how the interest rate skyrockets after that, turning their sweet deal into a debt nightmare.

Or, sometimes they get suckered by a lender offering “guaranteed approval” or “no credit check”. Sure, you get the loan, but you’re basically paying to rent money at an insanely high cost.  This is how people end up trapped by predatory lenders.


Borrowing money is a serious decision – it’s not free money. Yes, sometimes a loan is necessary.  But if you identify with any of the bad habits mentioned, it might be time for some honest self-reflection before adding debt to your life.  Your future bank balance will thank you

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