When should you not borrow money?

In our lives there are many situations in which we find ourselves with a lack of money. In these situations of insufficient liquidity, many people usually borrow money, be it a quick loan or a consumer credit. This type of financing can be of great financial help, however, keep in mind that borrowing is not always a more appropriate solution to solve your economic problems. In general, the most important thing before borrowing money is to assess whether you have the ability to face the debt. In this article we will tell you some of the reasons why you should not ask for a fast loan or credit.

 

You are not sure what exactly and how much money you need

You are not sure what exactly and how much money you need

It is essential that you ask for only the money you need. If not, you can incur a larger debt without need and that is never a right decision. You must ask for the money strictly necessary to cover the situation of temporary economic deficiency. Before applying for a loan, you should know exactly: what you are asking for, how much money you need and when you need it. If you are not clear about these three premises before borrowing money, there is a risk that you will lose that money in other things before the time of payment arrives.

 

You do not have stable income

You do not have stable income

When you do not have stable income or anticipated future income that will allow you to be sure of paying the loan granted within the established term, this is a crucial problem. Sometimes everyone can face unforeseen expenses. However, if you have problems paying your bills every month and your monthly expenses exceed your income, you suffer from a permanent financial insolvency. In this case, applying for a loan will only bring you much more trouble. If you do not have enough income to cover your monthly expenses, how could you cancel your loan with all interests? Without paying the loan on time, the penalty for delay and other commissions will leave you losing even more money.

The return must always be a priority. When you ask for a loan, paying the installments of the loan granted to best cancel the debt with the lender has to be your priority.

 

You have no money for periodic expenses

You have no money for periodic expenses

Continued expenses, such as a house rental or a mortgage, expand over time. Using borrowed money to pay for these types of expenses is not the most optimal solution. Especially fast loans and credits should be used as much as possible for all types of specific and unforeseen expenses that do not get too long.

 

You need money to pay your debts

You need money to pay your debts

You may have debts that you need to pay quickly. Borrowing money to solve this type of problem is only temporary but not definitive, since you get another debt at the same time. Using loans and credits to pay off other debts can lead to a spiral of indebtedness. Excluding special debt consolidation loans, borrowing money to pay off other debts mainly leads to even more serious indebtedness.

 

You want to make a risky investment

You want to make a risky investment

As we have already mentioned, loans should be requested when you are certain that you will be able to pay the repayment fees. Asking for a loan or credit to make high-risk investments is not a good option. These investments carry a great risk and it is likely that everything is not going well. If, in addition, what you are trying to do is pay the installments of your credit with what you earn thanks to the investment, you can get to a serious solvency problem at the time of the return.

When you have all these situations controlled, the option of requesting a loan or credit can be very effective and provide you with the ideal solution and the perfect help in some specific cases.

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