Four important life lessons credit teaches us

By Sahaj Palla

A teacher plays a crucial role in an individual's life, which could include parents, siblings, friends, academic instructors, or even life itself. Over time, we might forget their identities, but what remains are the lasting lessons they impart. However, departing from conventional wisdom regarding teachers, there's one peculiar instructor, and its name is credit, which offers unique lessons of its own.

Here are four important life lessons we learn from credit

Lesson no. 1: Taking control - Think of your credit limit as the runway for your financial plane. Sure, the plane can reach high altitudes, but it's got to land eventually, and you better make sure there's enough runway left. Using credit responsibly is like knowing when to pull up the wheels – keeping your spending well within the limits is the secret to a smooth landing.

Lesson no.2: Return what you borrow - Credit is a give and take business, you take money and you return it back, it is that simple. But in the event you don’t, it comes back at you 2-3 fold (a bit exaggerated but you get the drift), especially in case of credit cards, you’ll lose more than you bargained for. So, just keep it simple, take less, give back less and take more only if you are sure.

Lesson no.3: Always be prepared - Let’s face it, while money is not everything, it sure can get you through some surprises that life might throw at you. Credit at such places can be the hero of the moment, because nothing is more important than life itself. So, always hope for the best and prepare for the worst.

Lesson no.4: What you sow is what you reap - Credit if used correctly is rewarding, and by using correctly, we mean making your repayments on time, everytime. And when you do that you get more credit offers with reduced interest rates, banks don’t shy away from granting you loans, and you’re welcomed by financial institutions with open arms. On the contrary if you dilly dally on your payments, you’ll be penalised with a host of charges that’ll make you google them.

Be it credit or life, each offers its lessons. This Teachers Day, axio celebrates the wisdom our teachers bestow. As a lending institution, we recognize that credit can be burdensome, yet when used wisely, it's a tool for achieving dreams. Learn more about us here.

Disclaimer: The information in this article is compiled from various sources and is an opinion piece only. This is not to be taken as a substitute for professional advice on managing finances, reader discretion is advised.