What should loans be used for?

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Is there anyone who hasn't attempted to take a loan to solve an immediate need? Before now, it was quite a huge task going to the bank to take a loan. The huge requirements attached to it really made people run away from asking the banks for loan. For instance, getting a collateral equivalent to the amount you want to collect, getting guarantors to sign for you, getting your statement of account,tax history, and then the very annoying one of having to wait for a long time to get the loan.

If there is anything I don't like about getting a loan from the bank, is the fact that you have to get a guarantor. To me I just think it is way too much. Why does someone have to know that I want to get a loan? And if it is a guarantor that has a loud mouth, trust the whole village to know that you want to take a loan. I just think that there are some things that should be considered private actually. And this guarantor thing is one of them.

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Anyway, the loan apps came on board where you don't need to have a collateral or even get a guarantor to sigh for you. All you need to do is input some details including your bank verification number which is used to access your credit history and within minutes, you have your money in your account. If you ask me, I think these loan apps are convenient. They really are lifesavers too for someone who doesn't have any collateral to give. Their services are swift and can give you any amount depending on your credit history.

But then they have really ridiculous interest rates. Imagine having to pay back 20-30% of whatever you collect. The worse is that if you don't pay, a lot of them go about sending messages to your contacts and telling them that you are a fraudster who collected some money. I have received so many messages from loan apps telling me about some friends who refused to pay up their loans. Calling them criminals and soliciting for help to get back their money.

But the big question is, what should you even use a loan for? If you can go through all of these stress just to get a loan, it better be for a very good reason. You can take a loan to fix an emergency bill. Life can happen to anyone at anytime. So if you find your self in a situation where you need an urgent need for money, you can secure a payday loan to sort that out. Things like paying electric bills,medical bills, buying food, paying rent and starting up a business are acceptable reasons for a getting a loan.

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However, getting a loan to do a wedding is what I find outrageous. How can you borrow money just to spend on people. I see a wedding as an avenue to just invite people to come and eat and drink. In fact, it is a big No for me to borrow money do cover your wedding. Before even deciding to get married, you should have a budget and plan your spendings around that budget. Never ever borrow money to do a wedding. It is not a wise decision at all. I know of someone who borrowed some money to do his wedding with the hope that after the wedding, he would get cash gifts from friends and family members to pay back. He got the shock of his life because what he borrowed and what he realized couldn't even be compared. He ended up being in debt for more than 7months after the wedding.

Borrowing money to shop is a very stupid thing to do. If you don't have personal money, don't ever think of getting a payday loan to shop. Wait till you have your money to do that for yourself. Borrowing money just to satisfy a craving is another stupid thing to do. If you cannot use your own money to satisfy your cravings,then leave it. You will not die if you don't satisfy your cravings.
Whatever you do, ensure you have a concrete reason of taking loans. And don't take a loan that you cannot pay back. Check yourself very and see if the amount you need is what you can pay back even before the expiration of the loan. Let's not compound problems for ourselves.

Thank you for reading.

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