Taking out a loan with high interest might seem like an easy way to afford what you want, but in reality, it’s a financial trap that can weigh you down for years. I learned this the hard way. At one point, I had a house on loan, two cars on loan, and even electronics like a TV and video games—everything bought on credit.
But real wealth isn’t about owning things on borrowed money—it’s about earning, owning, and using what truly belongs to you.
How I Fell into the Credit Trap
The first time I bought a TV on credit was in 2014. It was a 45-inch flat-screen that I couldn’t afford at the time. My ex-wife and I were just browsing when a salesman approached us.
"You both have good credit," he said.
I asked what that meant, and he explained:“It means you can buy what you want now, pay later, and just make small monthly payments—with interest, of course.”
Without spending a single krone upfront, we walked out of the store with a brand-new TV. It felt great at the moment, but I didn’t realize what I was getting myself into.
From that day forward, credit became my way of life.
First, it was a TV.
Then a house.
Then a car… and another expensive car.
One click on a website, and the next day, my new car was delivered to my doorstep. I never thought borrowing money could be so easy, but when you don’t understand how money works, you make foolish decisions.
By 2018, I had a 3.8 million kr loan hanging over me. Every month, my entire salary went straight to mortgage payments before I even thought about food or basic needs. My ex-wife had her own perspective on money:
“A man’s money is for the family, but a woman’s money is just for herself.”
She manipulated me into thinking it was my sole responsibility to cover all expenses. To keep up, I took on extra night shifts—sometimes working 8-10 night shifts a month. Sleep-deprived and exhausted, my health and mental peace suffered.
Everything I bought on credit ended up costing me three times more due to high interest. And in the end, I was making more money than anyone in my family—but I was poorer than all of them.
What I Learned About Loans and Credit
Borrowing money may seem like a great opportunity, but it always comes with a price. Banks don’t lend you money because they like you—they lend you money to make more money from you.
If a loan doesn’t make your life better or help you earn more in the long run, think twice before taking it.
Key Takeaway:The Truth About Borrowing Money
1️: Every loan comes with a hidden cost – You take less today, but you give back more tomorrow.
2️: If you borrow, make sure it’s an investment – A good loan should pay for itself (like a property that generates rental income).
3️: Don’t buy if you’re not financially ready – If you can’t afford it now, consider waiting or saving for it.
A Question for You
Have you ever bought something on credit and later regretted it? Share your experience in the comments!
In my next blog, I’ll share more about how I escaped this financial nightmare and rebuilt my wealth the right way. Stay tuned!
Thank you for reading,
Tariq Khan
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