image edited by me using canva
Times are hard, and things are even getting more difficult every day, business not moving well, income is not enough to cover the bills and expenses keeps piling up. We are forced to some extent to start thinking of getting a loan to assist us. But does it really assist? Before you take up a loan, there are some things you need to consider first.
1 Reason for the loan
A loan, itself is not a bad thing, but the reason for you taking up that loan can make it seem bad. If you are taking a loan to spend to impress people, living a lavish lifestyle, or just throwing a party, or wedding, for instance, you are already on the wrong path. Loans should be taken in cases of medical emergencies, quick investments or opportunities, or basic urgent needs. To even start a business, it's not advisable to start with a loan, it's best to source from family and friends that will not add any interest rate for you, then when the business is in full swing and needs aided capital, that is when you can comfortably apply.
2 What is your repayment plan
You can't take up a loan when you don't have any source of repayment in form of a regular income from your job or business, I've seen people taking up loans to repay another loan, they keep digging a pit of debts for themselves, please, don't take up a loan when you have no means to pay back. that is a very wrong decision to make, even people that have a source of income, still find it hard to repay a loan, talk more a jobless individual.
3 Read the terms and conditions applied
You skip that important page because you feel it's too long, and you don't know there can be hidden charges to trap you, especially in case of default, when you don't pay on time there are always extra charges, also check the interest rate, might be too high compared to the loan amount you are requesting for, this is not the time to be desperate, think straight.
4 Compare before deciding
There are lots of loan sharks nowadays both online and offline, that we can easily loan from, before deciding on one, don't be too desperate, compare them and find the one that is more flexible and suitable for you, based on the interest rate, the repayment plan, etc.
5 You become an open book
Yes, you read that right, know that they will ask for your personal information down to the last person in your contact, you have to grant them access to your private information especially if you seek it from an online loan app. Most people are unaware of this, they just keep clicking grant access and cry foul about the loan sharks tarnishing their images among their close friends, family and business partners when they default payment.
It's best for us to consider all I have stated above before deciding if it's worth collecting that loan, save yourself from endless debts today. And remember if you don't have a valid reason for taking up a loan or paying back, don't take it.
Thank you for reading❤❤
Posted Using LeoFinance Beta
Loans cripple progress and does not give rest of mind.
We most times overlook the terms and conditions especially because of the urgency to get the loans
And like you said, many just want to get out of the temporary problem without a tangible repayment plan
Exactly, they create more chaos fir themselves in other to relieve themselves from smaller ones.
Thanks for dropping this interesting comment.
It's a pleasure friend ☺️
This is a very good and important points to consider before taking up loans. Yes there are good reason for loan and there are not.
I wouldn't take a loan just to fancy celebrate birthdays or any occasion.
Yeah, loans should only be taken for good and important purposes, and a fancy birthday party to impress id definitely a no no.
Thank you for coming around, I'm grateful.
I just applied for a loan online yesterday for my medical bills, unfortunately, I was declined. But I guess it is a sign for me not to take up loans..
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Yeah, it's not bad to lend but it will be if you don't have the means to pay back.
These are very useful points that you've raised and no doubt, if people carefully consider the reasons you've laid, they would be prompted to think again if the loan is worth it or not. I appreciate your thoughts on this @glorydee . Thanks for sharing.💕