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[QUOTE="Mika, post: 267878, member: 29399"] People get a loan for various purposes, for personal needs such as paying for education, medical bills, and house renovation; to buy an asset such as a house, or make an investment, for example buying stocks, or investing in a business. No matter what reasons people have for the loan, the basic purpose of getting a loan is to buy assets or make an investment so that you make more money. When you are able to earn more on your investment compared to the interest payable to your bank, the purpose of getting a loan will be fulfilled. However, this calculation frequently fails, and people end up paying higher interest on loans compared to the money they receive from their investments. When you decide to get a loan it should always be for investment, business, or buying assets. However, you need to calculate whether you are getting more returns or not. [/QUOTE]
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