Getting a loan is not unusual. In fact, many people have debts. They need loans to buy a house or car, to invest in business or in education, or to pay emergency bills. A loan can help people with their goals in life if used sensibly. However, it also has negative implication since it suggests that people need to borrow money to get what they can't afford. That isn't always the case as there are times that loans are necessary. Still, loans can bring more harm than good if abused.
Without a doubt, there those whose lives suffered due to excessive debt. There are numerous reasons for this. Some keep on borrowing money to repay their previous loans. Others miscalculated the numbers and later realised that they really couldn't pay the loan together with interest. There are also those who have sadly lost their source of earnings.
If there is no other alternative but to get a loan, then it's crucial to plan it accordingly and to observe discipline in repaying it. Before signing any loan agreement, determine first your finances. Keep in mind that it's not free money and that you are going to pay the loan back including interest and other charges that the money lender might see fit. So be honest with yourself and figure out if you can really pay back within the conditions of the loan without compromising the repayment of your other bills.
Choose a repayment term that works best for you. If there are options on payment period, make it the same time as your salary date. If you get paid two times a month, then make bi-monthly payments. There are loan firms that offer rebate when you get to repay the total amount earlier than predetermined. So if you can, take advantage of this. If you suddenly find yourself with standby cash, it's best to put it into your loan payment.
If you are still paying for a loan, as a general rule, don't take another one. But this is not applicable at all times since not all loans are for the same purpose. It can be financially stressful, though, to pay for several loans simultaneously. Consider consolidating all your debts if this happens. Maybe this is the right solution for your mounting debts.
Without a doubt, there those whose lives suffered due to excessive debt. There are numerous reasons for this. Some keep on borrowing money to repay their previous loans. Others miscalculated the numbers and later realised that they really couldn't pay the loan together with interest. There are also those who have sadly lost their source of earnings.
If there is no other alternative but to get a loan, then it's crucial to plan it accordingly and to observe discipline in repaying it. Before signing any loan agreement, determine first your finances. Keep in mind that it's not free money and that you are going to pay the loan back including interest and other charges that the money lender might see fit. So be honest with yourself and figure out if you can really pay back within the conditions of the loan without compromising the repayment of your other bills.
Choose a repayment term that works best for you. If there are options on payment period, make it the same time as your salary date. If you get paid two times a month, then make bi-monthly payments. There are loan firms that offer rebate when you get to repay the total amount earlier than predetermined. So if you can, take advantage of this. If you suddenly find yourself with standby cash, it's best to put it into your loan payment.
If you are still paying for a loan, as a general rule, don't take another one. But this is not applicable at all times since not all loans are for the same purpose. It can be financially stressful, though, to pay for several loans simultaneously. Consider consolidating all your debts if this happens. Maybe this is the right solution for your mounting debts.
No comments:
Post a Comment