Why loan collection should be discouraged

While some people have a candid reason to collect a loan, it Should still not be a habit in the lifestyle of the people. A loan is a borrowed money and most have interest attached with it. There are things to look out for while considering a loan: how much do I need? what will I use it for? how long can I pay back? will i also make money with this loan? Now, if this loan is collected and you want to use it to travel it is now a dept, moreso because you don't have a means of paying it back. It was not profitable.
It is preferable that when you collect a loan, you have a handiwork or skill that you want to invest it in to make gain, here you can pay the loan and still have your business booming.
All rounder, loan should not be considered in anything because the outcome of not paying back is dangerous. A person in loan will lose all his/her collateral, he/she could be indepted for life, he/she could die of heartattack or fear of not been not able to pay it. It would be a great loss if what they intend it for did not work out well, and many more consequences.
Loan is not a good thing to partake in and no one should develop that as a lifestyle in life.

 

[Jasz]

Firstly, taking a loan will render you passive towards your financial situation, with dependency on the creditor. Second disadvantage is that it always creates tension between the debtor and creditors there by making your financial situation complicated. Third disadvantage is if you don't know how to spend money in a saving way then you are already doomed in your new life. Next important thing is that if you are not book worm and avoid facing some issues in life then definitely it is not good for you to take out loans for your future life.

There are advantages of taking a loan, but there are many disadvantages associated with personal loan also.The major disadvantage is the interest rates for personal loans. The daily interest rates for these loans can range from 12% to 20 % depending on the lender. In some cases the loan can be up to twice as expensive as that of a credit card.

Taking a loan is not an easy decision as it has many cons. Loans are very risky, and can ruin your credit. Loaning money can give you stress, bad health, and a lot of other problems. The disadvantages of taking a loan do not really outweigh the advantages of having one. You should think about the risk before going to borrow money from someone or some company.