The phenomenon of incurring various commitments is becoming more and more common among Poles. We borrow in banks, in private loan companies, it even happens that we go after a request to family or friends.
According to statistics from the National Debt Register, over half of adult Poles have used a financial commitment, at least once.
Why do we borrow?
Because we earn too little and we have enough for the first? Or maybe because we really want to have what our neighbor has and we can’t afford it, we buy it on credit? What do we usually spend the money on? Do we get into debt because we have no choice, or do we do it recklessly, without a deeper thought, only to raise the standard of living and get on with others?
Financial market research indicates that the group who most often uses loans or payday loans are people between 30 and 40 years old. About 70% of respondents in this group used this type of cash injection. Among the respondents aged 40-50, about 70% used loans. In addition, surveys show that about 20% of households spend more than half of their income on repayment of liabilities. This is a very disturbing phenomenon.
Loan habits of Poles
It turns out that most often we borrow on current matters, to pay bills, for basic needs. Why is it like that? Can we not afford basic existence? Or maybe we are not in the habit of putting off even the smallest amount for the so-called rainy day, and we like to live a little for the show, as the old Polish proverb indicates – put up and put yourself up?
Some want to live the moment without thinking about how they will pay their obligations, which they will live on later. The analyzes show that women borrow more often for everyday needs. Probably this is due to the fact that they are more often involved in running a household budget.
And if we borrow then where?
Because just a few years ago we most often used the benefits of the family. Nobody liked it, but sometimes there was no way out and you had to get addicted to your aunt or grandfather. Explain what we borrow and listen to, how awkward we are, we can not put down or earn more. This is a very unpleasant situation.
Today, the vast majority of beneficiaries of loans borrow money from the bank, if they have the opportunity, and if they do not, they reach for non-bank loans .
We already know that we usually borrow on a daily basis. What else do we use the loan funds for? It turns out that holidays or holidays are a fairly frequent reason for contracting obligations. Although these offers are more often used by men between 30 and 45 years old. Why don’t they put it off for this vacation?
Because usually they are already having family, children and for them a holiday trip is no longer a cheap matter.
We are also happy to borrow money for the purchase of home appliances and electronics. We are still in a comfortable situation when we are planning renovation relatively early, and therefore equipment replacement. Then we can read the offers and choose the most advantageous. It is worse when the equipment breaks down and we quickly need to replace it with a new one. Then we take whatever we want, because we simply need it in the world.
Unfortunately, it also happens that people borrow for medicines or for therapy. Unfortunately, this is the sad truth about our society. The worst and most pernicious incurring liabilities is the one that is to cover others, contracted earlier. This is the shortest way to serious financial problems. We fall into the debt loop imperceptibly and it is not that easy to get out of it.
What do we need credit for?
We already know that we take out loans or payday loans to cover our current expenses. For bills, for holidays, or the purchase of equipment. What do we take out loans for? This is a financial commitment for a much longer time. It is often the case that we will pay back the commitment made until old age.
Poles like to go their own way and become independent. Unfortunately, only a few can afford an apartment or house. Only a few manage to get a flat as a gift, for example for a wedding or inheritance. We take a mortgage to buy a flat. It’s not as easy as taking a payday loan anymore.
Here, the recruitment process takes a relatively long time, you should complete a lot of formalities and wait much longer for a loan decision.
Another need for current young Poles is to own a car. This is a kind of indicator of the standard of our lives. Especially among men. It is difficult to buy a new or almost new car for cash with our earnings. It’s even harder to put it on, especially as we don’t put it aside. It is good if we have at least part of the amount set aside.
Then we can treat it as our own contribution. This will significantly reduce our budget.
Well, as we already have our dream “M”, and of course the car, what’s next? Time passes and a small or quite large renovation of our apartment or house could be useful. Although we often do renovations ourselves to save on the construction team, the total cost is never small.
Unfortunately, you can also see a significant increase in loans taken out at certain times, such as Christmas, Easter, the first communion period, or the beginning of the school year. And so it will look like until we learn to save, although small amounts. All the time we will need money for something, so in terms of loans and credits in the coming years rather not change much.