Nowadays, taking a loan is as easy as logging in to your favorite social media site. No more CI or Customer Intelligence and personal background assessments are needed. In just a few minutes, your loan application could be approved depending on the loan usage and the amount to be loaned. In fact, Homecredit, a financing company here in the Philippines approves gadget, appliance, and cash loan by showing two valid IDs with a salary slip only. But regardless of the type of loan that you are applying for, no matter how big or small it is, it is still important to consider the following points even before thinking of having a loan.
Is it a need or a want?
Most of the time, some people take loans for wants. Newly-released gadgets and fancy cars are few examples of wants. Most of them are not income-generating possessions that could depreciate in value in few years. However, a gadget and a car might become one of the needs especially if these mediums are essential to run a business.
Calculate the rate of interest
This factor is pretty much obvious before getting a loan. It is important to know how much the lender will take away from your pocket. Clearly, the lower rate of interest, the better. And in order to lessen the interest considering the same amount of loan, try to minimize the period of paying for the loan.
Affordability to pay for the maintenance
If you’re considering a loan for a car or a real estate, you have to take into consideration the upcoming costs in order to upkeep the maintenance of your properties. Can you handle the fuel expenses? How about the property taxes? Just be sure not to be one of those people who loaned considerable amounts for buying kinds of stuff only to realize how maintenance is costly and unaffordable in the long run.
Your own earning potential
While it is very easy to over-count the eggs that haven’t been hatched, it is also easy to underestimate the future expenditures, not to mention the unforeseen events that may happen. If you think your earnings is just enough to pay for the amount you are about to loan, then think again. Having enough is never enough since it may also mean that you’ll be living from paycheck to paycheck until your monthly loan installment is finished.
Read the documents
Always read everything that has been written on the agreement loan before signing it. Do not rely solely on that sales representative for he must have skipped several important details that may be used against you in the future.
No matter how many times I look at it, a loan is just another term as debt. And as what I’ve said in my recent Credit Story, a debt will always mean “Enjoy now, Suffer later” for me. It can only be “Enjoy now, Enjoy even more later” if the rate of return of the loan’s purpose (i.e. business, investments) is greater than the rate of interest. But if you badly wanted it that much, just make sure to be financially-ready for the added fiscal obligations that you are about to face, or else, you will end up selling other possessions just to pay for your loan.
Nicely put. Loans either make you or mar you. One should think wisely what the end result of obtaining a loan will be. @smaeunabs, I love that part where you said "Enjoy now, suffer later". More like one is postponing one's suffering.
Don't let those beautiful sweet-coated mouth representatives sweet-talk you. As she rightly put, go through the loan terms and agreement word by word, letter by letter and take your time to study the terms of the loan and agreement because at the end, once you pen your signature, ignorance will never or can never be an excuse.
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My sister had a bad experience of signing a loan contract without looking closely at the interest rate, which made her really broke paying for a loan that has nearly 50% interest in 6 months.
Indeed, ignorance is never an excuse. Thanks for sharing your insights @aprecious!
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Yes, there are many vital points, one of them, which must be dealt with before you send an application for a loan, is the definition of its purpose. This directly affects the type of loan and, accordingly, the terms and conditions of the loan. I think that loans are undesirable and should be avoided if possible. But if you don't borrow money thoughtlessly, you can change your life for the better with credit money. For example, you can get additional education or improve your living conditions. And with the help of a mortgage, after sorting out all the issues with a Mortgage Advisor Manchester, you can buy a house in one fell swoop. Isn't that cool?
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hindi masama ang mangutang.. what is bad!! pag nangutang ka lang igastos sa isang luho o d nman importanteng bagay.. nakakadismaya yun.. baon na nga sa utang mangungutang pa ulit.. yung ang sarap batukan. .. nice one
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marami akong kakilalang ganito, hindi pa nga nakakabayad ng utang, mangungutang na naman ulit. Ang mas masaklap, hinu hu u na nila ako ngayon, ni hindi pa nakabayad kahit isang sentimo. hahahah
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hahaha.. ganun na talaga mga tao ngaun.. sarap putulan ng ulo..
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hahahah talaga! kaya minsan, mas nakakahiya pang maningil kesa mangutang hahahah
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I always stay away from the subject of debt because I've developed a negative vibe for it, Shie. Pero you laid out the subject of your article clearly, and I'm feeling a different vibe for debts already. Bitaw Shie, I second Darryll's request. Session 2, please!
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Yaaaay puhon Abby! excited napud ko for our next session, I'll beep you guys if maluag luagan na among sched. :D Karon kay down kaayo ang Phil Stock Market, but this is a very good time to buy shares, kwarta lang gyud ang kulang hahahah
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Mao jud Shie. I think kailangan sad madunggan imong point of view bitaw. I'm about to enter the corporate world na. I need to hear from someone who does a lot of stuff and still manages to remain driven.
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Lisod gyud kaayo at first sa akoa ang time management. Pero everytime naa koy free time sa work, dira ko magbasa2 about finances. Dira pud ko mag reflect ug mag assess sa akong current situation if unsa pay pwede nakong mabuhat to broaden my knowledge not only about finances, but also about personal development hahahah charet.
It is really hard to remain driven. Naa say days nga kapuyon ko ug sakto paba ni akong mga gipangbuhat hahahah. But I think it is pretty much healthy to undergo those phases pud. Kay if mustart nakog question sa akong self, meaning naa pagyud diay koy dapat pang i improve.
And if there's one thing nga akong i advice sa imo, be a normal employee lang sa gyud. Promotions are good, but the mental, physical, and emotional exhaustions aren't worth the pay. Para naa pa tay time to learn other things in life. Kay usahay gud and work gyud ang hinungdan maong maluya natas laing butang. hahahaha
yaaay wishing all the best for you Abby :D Welcome to the prison, ay corporate world diay hahahah
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Hahaha! Thank you for the well-wishes, Shie! Kanus-a kaha kutob akong sentensya ? Hahaha
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Your posts always make me reassess my decisions in life. I really admire how passionate you are in your advocacy. Can’t wait to learn new things from you. 2nd session na please. haha!
-Darryll
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Yaaaay it's my pleasure @legendaryll! :D Puhon magkita napud ta ninyo hahahaha stocks session nasad :D I'll beep JC. Hopefully magka session ta after sa Steemsummit :D Yaaaay excited nako :D
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That is, certainly, really important. I recall having difficulty obtaining credit, or rather, being denied by a large number of individuals because I work freelance. I had to hunt for a long time to locate a normal site to accept loans without the bureaucracy, and after a lengthy wait and reading about different firms, I came across a slew of https://lending-club.pissedconsumer.com/customer-service.html , and I'm glad I did. I'm delighted I found American Financing, and I'm more happier that I found exactly what I was seeking for.
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I have been using the services of Vamo for a long time. The most important thing, I think, is to repay the debt promptly. In principle, I had no problems here, everything is transparent and clean. They quickly consider the application and immediately transfer the money to your card. Even from the house, you do not need to leave and do not need to stand in lines for half a day.
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The only type of loan that I consider justified is a mortgage. Because for example, I still had to pay for the rental of apartments, and I spent a lot of money on it every month. When I realized how much I had spent on rent in my life, I decided to turn to Mortgage Broker Ipswich to get the most favorable mortgage terms. My monthly mortgage payment is even less than the cost of renting an apartment in my area. I'm thinking about the case when it is worth raising borrowed funds.
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