It is common to report debts to something bad, but there are times when getting a loan can be a good way out, whether to avoid paying even higher interest rates, covering any emergencies or taking advantage of a good one. business Many people, however, end up seeing a loan to pay for superfluous spending that does not match their current financial situation.
Therefore, in this post we will show situations where borrowing may be interesting. If you are:
If you are financially tight and paying off debts, the tip is to exchange expensive for cheap debt. If you’re paying the exorbitant interest on your overdraft or credit card, for example, getting a personal loan can help you reduce the size of the problem a lot. Just compare how much interest is charged for each of the credit terms. For the use of overdraft, the rates reach more than 250% per year, while the personal loan charges around 50% per year. In the case of the revolving credit card, the difference is even greater, because the interest charged if you do not pay the entire bill exceeds 440% per year.
If you have more than one debt, it is best to raise them all and start paying off the ones with the highest interest rates first. See our post on getting rid of debts.
Read also: 5 tips on how to organize your debts in 2016
With organized and consolidated debts, it is easier to have predictability about the benefits you have to pay every month. It is also important to ensure that you will pay the installments on time so as not to curl up again. For this you can use a spending spreadsheet or an automatic financial manager, which allows you to look at your movements from anywhere, such as GuiaBayment.
2) Near the limit
If you are spending a large portion of your money but have a little budget break or can cut some spending, getting a personal loan may be a good idea to buy something more expensive than you want or make a dream come true. For example:
Pay a course
If you need to take a course to develop skills that will help you in your career and consequently result in a higher salary going forward, it may be a good idea to get a loan. The same goes for language courses outside the country (exchange). In the case of university courses, however, it is worth researching student loan options that may come out cheaper.
Open a business of your own
If you really want to set up a business of your own, you have already researched the market, identified your industry and made the right business plan, borrowing money to kick-start the idea can be a good thing. . But it’s important to plan for the company’s future cash flow and be on the floor when it comes to estimating demand for your product or service. If you have collateral (eg car) the chance of getting lower rates increases.
We never know when we might have an emergency, such as a family health problem, so it’s always important to have a financial reserve. But we don’t always have the extra money for those occasions. Hey If you do not have a relative or close friend who can borrow without interest, a personal loan may be a solution.
Reform the property
If you’ve been putting off building for years and can’t stand seeing the peeling, leaking walls or that unfinished room, taking a loan can be interesting. But it is important before closing the contract you make a planning of spending to be able to save and pay the installments on time. It’s worth seeing if you can reduce those non-essential expenses like restaurants, leisure, travel, and general shopping. See our economy tips.
Read more: 50 tips to learn how to save money
An important note: Avoiding spending on unnecessary things, such as changing phones, or something that will give you a future cost of maintenance. Examples: car, motorcycle, boat, gourmet coffee maker, pets, building a pool, among others.
Raise Personal Loan Options
Do not seek loan value only from your bank. The high interest rate variation will make a difference in the total amount of debt to be paid. In addition to physical financial institutions such as banks, there are online loan options that have lower interest rates.
Be careful when choosing the financial institution where you will get the loan and do not accept to make deposits before receiving the money – there are high chances of being a scam. Search for references on the internet and among acquaintances before closing a contract.