Common things people say when it comes to finance

[Holicent]

Financial misconceptions that hinder proper financing

1. I don't need a loan because I have a lot of savings.

2. I don't need a loan because I'm already doing so well financially that it's not necessary.

3. I just don't want to borrow money right now and figure out later if it's worth it or not.

4.I can pay back the loan easily in the future because my income will increase over time and my expenses will also decrease over time as well (which is true).

5.I can pay back the loan easily because there are no penalties associated with late payments or missed payments (which is true).

6. I should probably get a loan and acquire a car or house (even when the don't have any means of making money)

7. If I get this huge money, I would be the richest, nothing can stop me. Yea! It's good to be optimistic, but then, you should imagine the bad things too, because they always come and you don't need to be cut unawares.

 

[allison001]

Normally we will not likely meet alone because if we are able to acquire the needed money for business then that should be okay.

 

[Jasmine]

I will have to disagree with your first three points. Some people just don't need loan. They can either manage with their savings, or will avoid getting loan and wait until they have enough savings. People get loan when they want to do something but do not have enough money. Do people who don't want to do "something" actually need a loan? However, I agree your points n loan repayment. A lot of people think that repayment is easy or can wait, but they don't realize if they miss the repayment, their debt continues to build up. A lot of people get a loan and use it to buy luxuries but the don't realize if they don't have a strong financial position, they not not be able to pay back that loan. Loan is only for the purpose of investing in something that will give you return, not on something that will not get you financial rewards.