Effects of loans on savings

[Carpon]

Loans as we all know is an amount of money usually huge that an individual collects with the agreement of refunding it usually gradually with an added amount called the interest.
One thing about loans I that when you collect it, you feel the relief of the moment but the heat will come if you are not able to channel the funds right and use them in such a way that you can get enough that you won't suffer when it's time to pay back.
So many loan collectors have struggled with balancing their savings life when they are paying back. This is because the loan you are paying back will always dive into your cash and you may end up with something less than an amount you can use to take care of your immediate needs not to talk more of saving.
I personally know of someone who is fond of collecting so many loans. He will collect 2 or more loans at a time and there will come the tike for him to pay back and I can tell you it came to a point that immediately his monthly salary is paid he will see the bank alert now and in the next one minute he will still see alerts notifying him that the cash has been deducted and used to settle his loan.
He was not able to get something to take care of his needs not to talk of savings. It is very important we be careful while collecting loan

 

[Axis]

Loans most times have a negative impact when a person is trying to save. For example if you get a loan from a bank to start up a business the first profit or income you will make in the business will be channeled in paying the loan and most times this loan can be a huge amount also so therefore dead person will be all in to pay the amount just your ability to save can be hindered and also slacking behind. Getting a loan is just like collecting debit for someone you have a deadline in which you should complete the payment of the loan and so therefore if the deadline riches and you haven't paid back the loan it can become a challenge for you in your business and you can use your savings to pay back the loan which is not really a joyful action because that wasn't your purpose when saving the money. So that's why it is important for one to save money for emergency periods And also for other activities like investing