Why You Should Think Twice Before Borrowing Money
The continuing economic development and rapid modernization of technology, transportation, infrastructure and science have affected the lives of most families. The need to cope with these developments has put a financial strain on individuals thereby leading them to look for other sources of income such as BORROWING money from conventional and alternative lenders. The need to modernize has led people to apply for a PERSONAL LOAN without thinking twice about its financial repercussion.
Things to Put in Mind before Jumping in the CREDIT Pool
Consider the following; when you borrow money, there will always be an interest involved so no matter how sweet the deal is you still end up paying for more than what you have received. There are also processing fees, surcharges, penalties and other related expenses involved even before you get the loan. Second, when you file for a loan, your credit rating will be affected. This will not be a problem if you are disciplined enough to religiously follow the repayment terms but there is always that risk that something might happen along the way that intentionally or not you are not able to repay the loan. Third, borrowing from friends and family members, is also a never good idea. Borrowing money from friends and relatives is perhaps the least advisable thing to do. Money matters always put a strain on relationship. How many times have you heard of siblings fighting over money or parents suing their children because of financial matters? Fourth, borrowing money will tie you to a contract that you may find later to be very hard to follow. Once you sign the loan agreement, you are obliged to follow the same to the letter. Finally, borrowing money will surely put a lot of stress in your income management. Since a loan is an obligation it is necessary to put a priority on its payment. You will therefore need to reconstruct your expenses and more often than not you end up sacrificing a lot of necessities just to follow the loan contract that you’ve signed.