How to Avoid Unnecessary Personal Loans

[Abigael]

Personal loans are so good. They can help you to move out of a difficult situation or to start a profitable business when you have no capital. But they can be unnecessary sometimes. This happens in cases such as;

• Taking a loan for luxuries.
• Taking loans for basic needs - you need an income for this since they are recurrent.
• Taking loans to lend someone who won't pay back.

For you to avoid unnecessary loans, you need to do the following;

1. Have a source of income - loom for a job, start a service or products business, whichever way you need a source of income as an adult. This income should be enough for your basic needs and maybe some for investment and some fun in life.
2. Look for a side hustle and several income sources - this will enable you to earn enough money so as not to live from paycheck to paycheck. Having several steams of income so also a great way to build wealth and move away from taking unnecessary loans.
3. Embrace a savings plan - when you have some saved money, you rarely take loans. Which is so great for you. Emergencies don't even push you to taking loans and you can always lend it to people close to you so you don't have to take loans for them.

 

[Nightmare]

One of the best way to avoid personal loan is simply by securing a personal saving.
As a worker, it's not a thing for you not to have a personal saving.
As a matter of fact, it will save you from unnecessary debts and even from loans.
When you have personal savings, there won't be any need for you to look for a loan, this us because your personal saving would be in use when you want to make large purchase or do anything with money which is above your pocket money.
Thus, always have a personal savings to save you from dents.

 

[saoussen5765]

Losing a friend is better than getting loan for him and then he doesn't pay you back, it is simple.