The fact that you don’t need to secure a personal loan against collateral makes it seem too good to be true. And that makes it perfect for all those times when you are in need of urgent 2k.
A personal loan could be a good option when you want to make large purchases you currently cannot afford, such as a new apartment, a new car or a new device. But just like you shouldn’t take advantage of that kind friend that sends you urgent 2K when you’re in a fix, you also shouldn’t take advantage of the freedom afforded by a Personal Loan. For all its advantages, a Personal Loan can land you in trouble if you get careless.
So, for all the good reasons you can take a personal loan, here are some reasons you should never take out a loan for.
If you can save up the same amount you want to apply for, especially if it isn’t an urgent need, then you are better off not getting the loan. This will help you avoid the interest that comes with repaying a personal loan.
It might sound like a good idea to get a personal loan to invest in the stock market or the cryptocurrency market. Of course, you hope for rich returns, but what if you lose your money? Things will definitely get ugly for you if that happens. For speculative activities, it’s best to use the money you’ve put aside rather than taking a personal loan as that reduces the risk involved.
Personal loans are a great way to make large purchases you cannot afford. But they are terrible for things as trifle as shopping. Remember that you have to pay back whatever amount you borrow with an interest.
Owambes are purely recreational activities. They are large, grandiose parties thrown by Nigerians anywhere in the world, especially Yorubas, that involves a lot of food, dancing, loud music, and spraying money. You must have either thrown an Owambe or been to one. Taking a personal loan to fund one is a bit of terrible financial advice. It’s better that you save up for it than to get a personal loan for it.
If your current pay grade cannot service and maintain the new house you want to get a personal loan for, you should probably not take a loan for it. While some personal loans are salary-based, you should be sure that whatever amount you plan to take out is not more than 50% of your salary.
Making a personal loan work for your situation requires an appraisal of your current financial status. Assessing your financial situation, the repayment terms of the loan and the interest rate will help you make smarter money decisions.
That’s it for now. Oh, and don’t forget to be kind always. You can start by spreading the news. Share this with a friend. Friends don’t let friends miss out on stuff like this. We’ll see you soon.