How To Resist The Temptation To Take Out Loans

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Resisting the temptation to borrow is a decision that comes down to assessing whether you have enough resources to cover your needs (and a few wants sometimes).

The purpose of advertising is to transmit or communicate a commercial idea in a massive way to a specific audience. What that really means is that ads are targeted and designed to induce you to take a course of action.  The average person is bombarded with 5000 ads/day according to CBNews! Given this, how then do we go about sticking to (many of our) resolutions and being more fiscally responsible this year. If you’re like me, you overspent during the Holidays and now have to re-commit yourself to maintaining a budget.

To address this topic of how to resist the temptation to borrow, it becomes necessary first to understand what a temptation is and how it works. A temptation is defined as: The urge to do or take something appealing, but that can be inconvenient. Therefore, its functioning is in influencing the momentum through attracting something you want, but with the underlying element that the outcome tends to be inconvenient.

In order to resist the temptation to borrow, the first thing you should ask yourself is if there really is a  need for a financial commitment and all that it involves (interest rate, closing costs, insurance, etc…) Then answer the following question: Are the resources available to face this new financial commitment for the time being? Answering these two questions is vital to understanding how to resist the temptation to borrow.


The proper way to determine how to resist the temptation to borrow is by assessing if it is really a necessity, and if you have the resources to take out a loan in the first place.  And this is achieved by setting priorities, which will set the tone in the conduct of financial management

So when financial management presents the dilemma of avoiding the temptation to borrow, the answer is simple: Focusing your efforts on setting priorities that are directly linked to needs. In this way, regardless of the type of stimulus that is presented, when subjected to an assessment of whether it is really a necessity and if the resources available to face the burden of a loan exist, then a solid basis of response will be had on how to avoid The temptation to borrow. Now, there are exceptions to every rule. In other words, if you’re considering taking out a loan because you are confident that you will be able to earn back more than the interest that you’ll accrue on the loan, then by all means, take the risk.


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