Borrowing Money is ‘Borrowing the Future’: Things You Need to Know Before Deciding to Borrow

In life, there are many times when we face urgent financial situations, such as paying tuition fees, purchasing household appliances, or covering living expenses. Many young people, especially students, choose to borrow money as a quick solution. However, borrowing money is not just about receiving a sum and repaying it gradually—it is also “borrowing the future,” meaning you are using your future income in advance. So, is borrowing money truly a good solution? Let’s explore the important things you need to know before making a decision.

1. Borrowing Money is ‘Borrowing the Future’

Borrowing money means using financial resources that you do not yet have while committing to repaying them in the future. This means that you will have to allocate a portion of your future income to repay the debt, along with interest. If you do not calculate carefully, you may fall into financial imbalance, which can greatly affect your personal plans.

Among young people, especially students, loans are often used to pay tuition fees, buy motorbikes, laptops, or even household appliances such as refrigerators, washing machines, and air conditioners. However, if there is no clear repayment plan, the loan can become a prolonged financial burden.

2. Effective Tips for Young People Before Deciding to Borrow Money

Borrowing money can help you quickly solve financial difficulties, but if not calculated carefully, it can become a long-term burden. Many young people make the mistake of borrowing without a clear plan, leading to accumulating debt and losing control of their finances. Before deciding to borrow, consider the following:

• Only borrow when absolutely necessary – Do not borrow just for shopping, entertainment, or following trends. Make sure the loan serves essential needs such as education, work, or emergencies.

• Calculate your ability to repay – Before borrowing, review your income and monthly expenses to ensure you can make timely repayments and avoid falling into a debt spiral.

• Choose a reputable lender – Only borrow from licensed financial companies or banks, and avoid loan sharks and unclear lending services.

• Read the loan contract carefully – Understand the interest rates, penalties, repayment terms, and other conditions to avoid unexpected financial pressure.

• Do not borrow to pay off old debts – If you have to borrow to repay previous debts, it means you have lost control of your finances. Review your spending habits before continuing to borrow.

3. Financial Risks of Borrowing That Young People Should Be Aware Of

3.1 Accumulating Debt Due to Lack of a Clear Repayment Plan

Borrowing money is easy, but repaying it is the real challenge! One of the biggest risks of borrowing is losing the ability to repay. You have the responsibility to repay on time, including interest. If you lose control of your finances, your debt will keep increasing, along with high penalty fees and interest rates.

Many young people start with a small loan, but because they lack a clear repayment plan, they find themselves short on money when the due date arrives, forcing them to borrow more to pay off old debts. This creates a cycle of "debt piling up," turning a small loan into a massive financial burden.

3.2 Borrowing from Unreliable Lenders, Falling into Scams, or Loan Sharks

Not all lending institutions are trustworthy. Many black-market lenders or unclear online loan services attract borrowers with appealing ads such as “instant loans with no paperwork” or “get approved even with bad credit.” However, in reality, these loans often come with extremely high interest rates and unfavorable terms, making it easy for borrowers to fall into a financial crisis.

3.3 Overspending Due to Dependence on Borrowing

One of the main reasons many young people fall into a cycle of debt is uncontrolled spending habits. The ease of accessing loans gives some people the mindset of "having money, so spend it," leading to excessive shopping, dining out, and entertainment without thinking about repayment.

This mindset is especially common among students and young professionals who do not yet have much experience in financial management. At first, they may take a small loan to cover personal needs, but over time, without a proper spending plan, the loan amount grows, forcing them to continue borrowing just to maintain their lifestyle.

4. Conclusion

Borrowing money helps you address urgent financial needs today by using future financial resources. If managed properly and planned carefully, you can use loans to invest in yourself, your education, your career, or larger goals. However, since this is money from your future, you must ensure that you can repay on time without affecting your financial stability. A smart borrowing decision not only helps you solve immediate problems but also serves as a stepping stone to building a solid financial foundation for the future.