Don’t take a Loan Unnecessarily

raaman

Well-known member
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.
 

Abigael

Well-known member
I totally agree with you. Taking loans for unnecessary purposes is a mistake that I did many times and I always ended up regretting. You will never be financially stable if you live such a life. You ought to learn to practice self discipline where you spend your money mindfully. If you want a weekend away in the countryside, start saving for it early to avoid taking a loan. You should only take a loan if you have a good plan that will earn you more money to pay back the loan with its interest.
 

Lekhraj19

Valued Contributor
Unnecessary loans go very bad sometimes. I have seen in India that many people here take loans in the way that they never know that they have a back-up plan to pay for it later or not, and @raaman you will be very well aware of these things.

I understand taking loans when a person is unemployed and wants their loans for siblings' studies. I have seen this in my friend circle and neighbor. This kind of loan is a kind of expectation-based where they expect that their sons or daughters will be able to pay back in future.
But, at the same time taking in huge amount should be avoided.
 
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