If you are still in the process of taking out mortgage loans, you need to pay attention to this article. This can make or break your loan repayment experience. Most homeowners, who take out mortgage loans, get caught up in the heat of the moment. In many cases, they get in over their heads because they let the raw emotions at play get the best of them. Not surprisingly, they end up becoming vulnerable to making bad decisions.
By simply becoming aware of the importance your emotional state plays when you make important financial decisions, you increase the likelihood that you would make better decisions. You have to remember that mortgage loans are the type of obligations that can haunt you for a long time to come.
We’re talking as much as 30 or more years in the future. Talk about a long-term commitment. If you make a decision that’s not based on the proper information or you make a bad decision in the heat of the moment, the impact of that decision can continue to affect you for many years down the road.
The first thing that you need to understand is that it’s okay to be emotional. A lot of people actually make emotional decisions. They were very emotional when they made certain decisions and they made certain calls, but they like to play this game with themselves where they try to convince themselves that they actually were very reasonable and logical in making certain decisions. What they are doing is that they made the call in an emotional state and then later on they come up with justifications and excuses that seem logical to explain why they decided the way they decided.
The best test for this is to simply ask yourself if you were completely logical from the beginning would you still make the same decision. Nine times out of ten, they would not make the same call. This highlights the fact that your emotions have a tremendous impact on your decisions. You need to be mindful of this fact, so you can make better decisions. Especially, once that it can involve hundreds of thousands of dollars over an extended period of time.
Your state of emotion can impact how much money you pay on your loan for a long time to come. We’re talking about your timeline when you first take out the loan and your timeline when you consolidate your loan. It’s easy to get excited regarding certain pitches and certain deals, and unfortunately, it’s too easy to turn off our logical and rational side when we are emotionally caught up in the moment.
Be aware of your emotional state. This is the first step in assuming more control over the quality of your decisions.
Your emotional state when repaying your loans can also have an impact on how quickly you repay your loans. Did you know that even if you are saddled with a 30-year loan obligation, you can speed up the rate at which you repay that loan? You really can speed it up if you are properly motivated enough. If you have the right kind of passion, you will find ways to increase your income, and come up with shortcuts and solutions that will drastically reduce the timeline in which you repay an otherwise long-term financial obligation.
It all depends on your frame of mind. On the other hand, if you think that repaying your loan is a chore or some sort of punishment, you might actually be adding years to the repayment process. Why? It feels like it’s dragging. It feels like it’s a completely unpleasant experience and instead of trying to figure out ways to increase your income, so you can shorten the repayment period. You end up mentally enduring the punishment and you end up limiting your creativity to such an extent that you can’t find the resources to pay off your mortgage sooner rather than later.
It’s just too easy to drop the financial ball when paying off your mortgage. It’s just too easy to think that your mortgage loan is like a financial ball and chain that regardless of what you do, you will still be stuck with this weight around your neck. If that’s your attitude, then you are going to be holding yourself back from thinking of ways to repay your loan sooner.
It’s bad enough that your attitude regarding your mortgage loan is sapping you of the energy you need to come up with income-boosting solutions to pay off your loan sooner. It also can negatively impact other areas of your life, maybe your relationships will appear more stressful to you, maybe your work will appear more taxing or meaningless to you. Be aware of how your negative mindset regarding one area of your life, in this case your financial life, can have a negative effect on other areas of your life.
A lot of people are completely oblivious to this and they end up living a miserable life, and it can all be traced to one particular source of irritation.
Maybe it’s too late at this point in time to get away from taking out a long-term obligation, but this doesn’t mean that you can’t be proactive as far as other financial obligations are concerned. By being clear about your mindset when considering taking out loans now, you increase the likelihood that these won’t have a negative impact on your life going forward.
You might not be able to jump into a time machine and undo bad decisions, but by being proactive and not letting your emotions get the best of you, you can start making better decisions. You can start making truly informed decisions that you can happily live with.
This will enable you to eventually adopt a more positive and conducive mindset that would enable you to pay off your loans sooner rather than later. The good news is that your mindset is always a choice.