Have you borrowed money for business or for personal purpose and feel really committed that your entire activity depends on it? It becomes more dramatic when the loan cannot be paid early thereby increasing the amount to be paid. A lot of people get more loans to pay the previously existing ones. One thing a lot of people do is get into loan without understanding what they are getting into. When a financial company is giving out a loan, it is a form of investment for them and it is left to you to make profit out of whatever you loan you are getting needless to ay that loans can make you lose precious properties.
One thing about getting loans that I have observed in people who get a loan is that they often do not need the loan. There is a different between wants and needs, if you are getting a loan for a vacation and/or a want, then it is not a good idea. Loans should be resorted to as the last option for a need. If a loans interest is higher than whatever you gain from using the money, then it is not worth it.
Another big mistake a lot of borrowers do is they just overpay the lender. Because you want a loan does not mean you should pay a high interest rate on the loan. There are a lot of financial institutions and lenders who would give you a good lending interest rate and not 19% monthly on borrowing from them. Use all the options, pick a good lender with very good options and lending interest payment. Most payday loans have high interest rates, so if you are getting a loan in anticipation of a payday then be sure it is worth it.
One thing to check out for when getting a loan is the hidden charges. A lot of loans have hidden charges and these charges are not made known to a lot of borrowers, the lenders just use these hidden charges to extort money from the borrowers, thereby keeping them in debt. It is important to check out all charges before getting a loan. In most cases, loan sharks are often responsible hidden charges.
Can you afford the loan is one thing that a lot of people do not consider? It is a different thing to get a loan, and it is a different thing to have the source to pay back the loan. If you are not certain of a reliable source to pay your loan, then do not collect the loan. You might be forced to let go of something precious like a home if you are unable to repay your loan.
Conclusion
A loan is not supposed to be for luxury and enjoyment, it should be considered carefully before being taken. Consider the loan you are about to get and properly check if you can afford it.
Very well mentioned friend, loans should not be taken for any form of luxury whatsoever it should be only used for business and the profit for the loan must not be above the profit to be made on business.
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Very valid point,the profit on the loan should be reasonable.
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Hi @mojubare
Lending money is usually very difficult nowadays there must be many things that guarantee that this loan is returned.
My grandfather always said, he who honors his debts always has money.
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This is a powerful quite from your grandfather, it is good to always pay back our loans.
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Hi @mojubare
I've never asked for a loan from a financial institution. I haven't even thought about it.
As a teenager I asked a great friend for a loan, for a venture, it went well, I didn't pay interest or anything like that because the friend didn't accept it. But a financial institution is something else, that's what they live on, that's what they get rich from.
I know it would be different.
You have to evaluate many things before you can take on the responsibility of getting into debt.
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You had a good friend some other friends will completely ignore your need for the money, debt is actually very powerful one needs to consider various options before getting into it.
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Yeah, he's actually a good friend.
But I stay out of debt.
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Hello @mojubare
The truth is that loans are a double-edged sword, many people believe that by taking out loans they are settling their debts, for me it is the opposite. Most of these companies only want to win and take advantage of those who need it, for that reason you have to take into account all the disadvantages and also be very sure of not having another way out.
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That is the fact and loans could be really dangerous so we have to consider our options well.
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Hello @mojubare, request a credit deserves that we generate later enough money to cancel the fees proposed by the financial entity, therefore following what recommended in your reading, I would apply for a loan to make an investment that would allow me to generate enough money to cancel it and make profits that would allow me to continue to enjoy that benefit. Without hesitation I would never request it to go on holiday. See you later friend !
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That is an amazing decision friend, it is good to keep to our own part of the deal in order to avoid embarrassment.
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