Loans are not as bad as people make them sound.

Hello, everyone.

I welcome you to my blog. Loans are not as bad as people make them sound. The reason why we feel loans are bad is because it did not go well for 70 percent of the people we know that took loans; for that reason, we have ruled loans out of life. Loans are good because they will help you achieve your goals faster. Maybe you need money to secure a house or pay for tuition fees. While saving for that can take a very long time, a loan can clear that up in no time, and then you look for a way to go about paying it back.

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Loans are not as bad as people make them sound; just go for a loan you can afford to pay back before the due date to avoid embarrassment, a loan that you can comfortably pay back including the interest if there is any issues always the best loan. If at any point you feel like you cannot pay back before the due date, then you should back off and not push through with the loan, as that is how we continue to make loans and borrowing look like a terrible thing to do.

If you planned on saving for a period of time, then instead of saving, you use the money to pay back the loan taken. The reason many people hate loans is because of the interest attached; for example, borrowing $200 to pay back $250. This is exactly why many people detest loans, but needing a loan does not necessarily mean you must get it from loan sharks or banks; you can meet friends and family to loan you some money, and that way you don't have to pay back with interest.

Loans do have a significant effect on our income, which is why many people find it difficult to pay back loans, and it ends up becoming a problem between them and the lender. Once it is time to pay back a loan, that is when you forget how the money borrowed to you helped you in your time of need; that is when you start wishing you did not take the loan in the first place. This is why it is important to borrow wisely and ask yourself these questions before you go ahead and borrow.

• Do I really need to take this loan? Is taking this loan the only option?
• Also, can I afford to pay back before the due date?
• How do I plan to pay back?
• Last but not least, what is the interest rate? Is it something I can work with or not?

Many people make the mistake of rushing into loans desperately and don't ask themselves this question; all they want is to be given the loan so they solve their problems, and after that they come to realize that the interest was too high and are now finding it difficult to pay and will try to breach the contract signed.

A few things to keep in mind when taking a loan include

• interest rates.
• Due date.
• your source of income and how you plan to pay back.
• The terms and conditions of the loan, some loan terms and conditions only favours the borrower while the one who borrows work themselves out to pay back.

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Loans can either affect your finances positively or negatively, and it all depends on the type of loan you are taking, as we have bad loans and good loans. An example of a bad loan is one with a very high interest rate that will stress and strain your finances before you are able to pay it back, and good loans are those with flexible terms that give you enough time to pay back with low interest rates. An example of such a loan is a student loan.