Be wary of Loans

[Bryan35]

Loans are great for most financial situations but when they have interest that is more than what is the initial loan then it could be a disaster. I do not use loans for anything, I can pay for a car at the dealership I can buy a house with no mortage. I actually do not believe in loans since they make me a slave to the lender and I do not want to be treated as a debtor.

 

[Alexandoy]

You are lucky that you do not need to take a loan for buying a car or a home. Our 2 cars were bought via a bank loan and so is our home. Without the bank loan we would still be renting until now. After 11 years of paying off the installment to the house mortgage we are now free of debts, our home is absolutely ours and so with our 2 cars.

 

[btaliat]

Loan is a two face sword. It can be good and also if not well managed can be the downfall of a business owner. There must be good management of it or else there may be regret on why the loan was obtained in the first instance.

Before one decides to go for loan, there should be many reasons why the loan should be taken. It is even to he obtained only if all the means I have been exhausted. There are many alternatives to loan.

After that, there must be plan on the repaymentof the loan. There are some many strategies, some may decide to pay by installment on some stipulated period of time which may be monthly or any other ways. While others may decide to pay once after the expiration of the tenure.

There should also be plans on what to use the money for. Some borrow for the fun of it. They don't use the borrowed money for productive things. This is the reason why some people run into debt at the end of the day. Because they don't use the money for something that can bring them money but instead engaging in frivolity things and the likes.

 

[Ajebo25]

Getting a loan is very good because it helps you when you are left with nothing or when you jobloger hsve any alternative to where to get money from st thr time which you borrowed it the only bad side is when you can't or you're unable to psy up thr load which is a really bad thing.

Before taking s loan you should ask yir self where are yih going to get money to psy back if you're not sure then it is advisable not to take the loan but if you're sure you can get the money to pay back from the source which you rely on then you can go ahead and take the loan or you should have a back up plan having a back up plan means you should not focus on one source to get the money to pay back if you focus on one source and you get disappointed then that's a problem but oncebyou hsve a back up plan you are assured that even if you don't get money to pay back from the first source at least you can get it from the second source you should also not borrow money to do irrelevant things

 

[Richee84]

Loan have it own advantages and it own disadvantages, it all depends on what the loan is use for. Loan are generally meant to improve the standard of living of individuals or to expand our business in order to make good profit. Loan are meat to be use as backup for business expansion, loan should not be use for newly established business as new business is bound to face different kind of challenges at the early stage which may make the repayment of loan to be very difficult for them at that early stage. Business at growth stage can make use of loan to expand it business in order to increase it income or profit. Business at the growth stage are seen as the best time in which they make enough profit, profit tend to be constant at the growth stage so therefore they will need to expand their business to compete favourable well among other competitors, because profit is constant at the growth stage, collecting loan for business expansion is a good thing to do as the means of payment is readily available. It is better to get a loan when the means of repayment is available or the loan should be better ignore.

 

[Abigael]

It is true that loans can make you a slave to the lender. Especially in cases where you don't have money to pay back the loan. You end up having so much trouble with the loan lender and build a bad credit history. Having a negative credit History denies you of many opportunities.

There are business loans that you can take and they benefit you alot. You can use the money to start a business that you have planned well and so you earn some profits. With time, you pay back the loan and remain with a business that earns you money.

But you may take some personal loans which end up being a liability. The loans are maybe used for luxury items such as an expensive phone or taking your friends out on a trip. Such a loan does not earn you any profit and so you will end up being unable to pay back the loan.

Other personal loans are beneficial though. For example taking an education loan is great, especially those given out by the government. They don't put you on so much pressure to pay back and the skills that you learn from that education will land you a good job.