Using Personal Loan to Buy Luxuries

[Mika]

People get personal to make their life easy. For example, they get a personal loan to buy electronic items (a laptop, an iPhone, etc.), kitchen gadgets (fridge, cooker, etc.), furniture (sofa wardrobe, etc.), cars, bikes, etc. There is nothing wrong with this because you need a lot of money to buy these items and if you cannot save enough, a personal loan becomes useful. Furthermore, you can start using these items at once and you get time to pay back.

It is ok to buy essential items through a personal loan, however, how good is it to buy luxuries?

You can get a personal loan to do anything you want if that makes you happy, and if you are financially fit to pay it back. How do you determine your financial fitness? Your loan repayment should never exceed 40 percent of your net income. In other words, if your income is $1000, your loan repayment should be less than $400.

 

[Jasmine]

Well, it is not good to go on a vacation and spend $10-20 thousands when you have an outstanding loan. However, life is not only about working like a machine, life is also about enjoying. I don't mean to say you should spend money on luxuries when you have a loan but what I mean is you should never be too hard on yourself. What if you bought a Louis Vuitton Bag for $3k and was very happy because of the purchase, and your happiness reflected on your work efficiency and was able to work harder, make money faster, make more money? Enjoying life also makes you better at work. If you want to live a debt free life, you should never get a loan at any cost, however, if you believe you can get a loan and pay it gradually and in the mean time also enjoy life, you are free to do so.