Is it Better to Save up Money Rather than Borrow?

Perhaps NO! This is quite a difficult question and also the one that may not have one answer. Financial matters are all about current situations, past experiences and future plans. They have many aspects and it is better to take a balanced decision.

The better approach can be to know both ‘saving’ and ‘borrowing’ options on different points. Considering them can help you take a final decision. It will be an interesting mind-boggling experience to know the varied aspects. Better thing is to understand the other side of the coin of the two options.


This is in the habit of many while some struggle to get rid of their spendthrift habits. Why not see, what the concept of ‘saving’ has to offer.

·You do not get the burden of debt

Load of debt is never a thing that you yearn for. With a good saving, there is no need to borrow money from anywhere. No need to pay instalments, no fear of fluctuation of interest rates, you do not owe to anyone. This prevents any sort of compromise in desires, as a part of your income is not going in repayments.

·Your credit score does not affect

To take a loan, you need to have a good credit score. Things can be tricky if the credit rating is low. But in savings, you are a free bird and no type of credit rating can ever affect. If you want to buy something, there is no fear of credit check as money is already there in your bank account. Isn’t it great??


Yes there are many things that say that you should go for savings. But there are several reasons that may give a different perception and after that you can take a balanced decision.

·You only afford what you can save

Savings can be good for small purposes but if you want to make a big purchase for instance a car or house, you cannot afford. There are many expenses and you cannot keep every penny in the piggy bank. This means there is always a limit on what can be saved and in turn what can be used.

  • It takes a long time

Saving is a time consuming task and only after you save for a long time, the results show. This can be frustrating as every month compromise on desires becomes necessary to save money. The pace at which you save is always slow as only a certain amount goes for savings.


Now comes the other common thing that has become the vital part of the financial lives.

  • You can borrow higher amount of money in a short time

The importance of money depends on its timely availability. By borrowing funds, you can get money in a much shorter time. There is no need to wait for the long time as you do in savings. At the very time of need, get funds and fulfil your needs.

  • You can improve credit score through specialised loan products

Taking out a loan does not only bring funds only. There are special loan choices like bad credit loans offered by the loan company such as, which aim to help you in improving credit score status. This makes the borrowing a smart decision.


Borrowing too has another side, which may ask you to give a second thought before you take a final decision.

  • You pay not only instalments but bear high interest rates

You know very well how uncertain is the finance industry and especially the lending market. The up and down of the daily interest rate is always a concern for the borrowers. They pay high rates, which make the loan instalments bulky and boring. The purpose of taking funds become less important when you know the future is going to be heavy with the obligation, which is bigger in size than the reason to borrow it.

  • Missing repayments make the situation worst

Already with instalments to pay, you have to struggle a lot. In case of missed repayments situation becomes worst due to late payment fee. The first impact is to show on your financial records. The second shows on the financial future and that can be a long-term thing.

The above points perhaps are good to give you a perception about what can be good or better for you. However, it is also not bad to accept the vital reality that both are important on their own part. Isn’t it?

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