raaman
Valued Contributor
You should only go into debt in case of real need. Asking for a loan to spend a weekend at the country side, buying a new Phone or renovating the furniture in the house is not wise.
Whims must be paid for with savings, never with debt. And this is one of the most common mistakes when taking out a loan. You must not forget that by getting into debt, everything becomes more expensive.
If, for example, you decide to finance your vacations with a loan for which you will pay 8% interest and that you will return in 36 comfortable installments, you will end up paying almost double in interest alone.
Whims must be paid for with savings, never with debt. And this is one of the most common mistakes when taking out a loan. You must not forget that by getting into debt, everything becomes more expensive.
If, for example, you decide to finance your vacations with a loan for which you will pay 8% interest and that you will return in 36 comfortable installments, you will end up paying almost double in interest alone.