Lenders are known as some of the real experts in marketing. By launching a simple viral video, a lender will be able to draw in thousands of borrowers from many parts of the world. Banks are notorious for this because they have larger marker reach compared to small-time lenders. If you’re getting tired of lenders’ attractive marketing practices, here are some methods to shield yourself:
Financial awareness is all about knowing your overall financial stance. Many people don’t have financial awareness – they’re mostly driven by impulse to buy stuff and spend money. That is the consumer mindset embedded in everyone’s mind through years of advertisement display and media control. If you’re financially aware, you can assess the level of need for a loan. Most of the time, you don’t need a loan – you’re just mesmerized by low interest claims and other perks offered by lenders. By being financially aware, you’re stepping your foot forward
Don’t Stay Too Long in Social Media
Social media is a great source of all types of information. More often than not, it’s also a source of distraction and psychological hooks. If you spend too many hours in social media, lenders will be able to latch onto your mind. Their pages will bombard you with content and instill a ‘need’ for their loan products. A social media diet is a good strategy to prevent lenders’ marketing tactics from infesting your mind. Minimize your daily stay in social media, particularly Facebook. If you can do this, then you’ll be one step closer towards loan independence. Also, while surfing in social media, focus on other areas instead of financial portals.
Always Maintain a Contingency Fund
One of the reasons why people apply for loans is the lack of appropriate budget. If you constantly rely on loans, this probably means that you have no savings or your income threshold is not enough. As much as possible, you should set up a contingency fund. This fund will be used for emergency situations. At first, it’ll be hard to set this up. Your contingency fund (also known as rainy day fund) should have at least three months of your projected income.
Lenders’ tricky marketing practices will always be a part of global financial systems. Rather than stressing yourself about these marketing methods, you should just ask yourself if you need loans. Or if you have loans, you should think about proper repayment methods. Nowadays, it’s beneficial to be a responsible borrower.