What you need to know before choosing to take a Loan.
A Loan represents a responsibility that has to be dealt with care and maturity. Today’s topic will help you to understand more about the importance of analysing all your options before you make your decision.
There are Good Loans and Bad Loans.
Good Loans are essentially those that have a possible return on your investment, for example, buying a house, completing your studies or maybe starting your own business; however, it doesn’t mean that you should take a loan for all of the above.
Think about it this way, any loan is money that is coming into your pocket, and you will have to repay, plus the “annual interest”.
A Bad Loan is anything that will not return any cash flow or very less, for example, your car, your Credit Debt or any Personal Loan for travelling, shopping, etc.
Good Debt or Bad Debt, a Debt is a Debt that will have to be repaid with a significant amount of interest. Before you take a decision, explore all your options and do your research to make sure a loan will not destroy your Personal Finances.