Good Credit and Bad Credit
Some people and businesses look to borrow their way out of trouble. This is the very worst thing you can do. Borrowing should be for a specific purpose to improve your position, not to fill the gap between income and expenditure. if there is a gap, simply you must either earn more or spend less - there is no other way to resolve cash flow problems in the long term.
Borrowing for cash flow will only postpone the inevitable if expenditure exceeds income, and that underlying problem has to be addressed first.
You should borrow, when you are in a position to easily make the payments, to spread the cost of a major purchase or event over the lifespan of what you are buying. Sounds like simple advice, if everyone and every business took this simple lesson on board, there would be far lower levels of out of control debt and the utilisation of credit would enhance the lives of the borrower rather than destroy it.
Borrowing for cash flow will only postpone the inevitable if expenditure exceeds income, and that underlying problem has to be addressed first.
You should borrow, when you are in a position to easily make the payments, to spread the cost of a major purchase or event over the lifespan of what you are buying. Sounds like simple advice, if everyone and every business took this simple lesson on board, there would be far lower levels of out of control debt and the utilisation of credit would enhance the lives of the borrower rather than destroy it.