4 Really bad reasons to take quick loans & sms loans
If you are in need of extra money quickly and do not have any other opportunities to raise capital, you can consider a quick loan. But borrowing money for luxury, games and consumption you can’t afford is stupid. Here we list 4 really bad reasons to take quick loans & sms loans.
1. Paying for your wedding
Suddenly someone got down on their knees, and now your wedding planning is in full swing. Perfect! But do not let this happy moment turn into your first struggle in marriage: to try to figure out how to pay off the enormous debt that has arisen for a single day.
Rather save for your wedding and do not exceed what you can afford.
If your budget is not enough for the dream wedding, you have to make an adult decision. Either postpone the wedding to save up for the rest or start picking away parts from the planning. This can mean shortening the guest list, making the decor yourself or switching from lobster to something else less expensive on the menu.
And yes, an extravagant, grand wedding may be important. But it is a small, small part of a potentially long and happy marriage. And starting that marriage with a substantial debt is of course not a good idea.
Did you know that
Interest rates are usually more expensive on quick loans. A given question is why? You can reason like this:
As mentioned, quick loans are often used by a group of consumers who find it difficult to obtain loans elsewhere. Such as students and low-income earners.
The higher interest rate is thus a direct compensation of the higher borrowing risk. That’s how it works. If the risk of repaying the loan is higher, the individual interest rate will be higher. This is a logic that applies to all types of loans and credits. Not to say that all fast loans have a high interest rate. There are even interest-free quick loans – even though these loans are tinged with specific requirements.
2. Pay the luxury trip
Holidays are a time for relaxation, discovery, escape and, most importantly, having fun. But it is no fun if you come home from vacation to a big, fat debt. Save up money to pay for the trip in its entirety so your world travels do not bankrupt you.
3. To finance the car
Car loans with good conditions can be a good option if you need a vehicle and neither can or do not want to shell out money. However, quick loans tend to have higher interest rates than car-specific loans for people with good credit.
If you are planning to finance a vehicle, you should first talk to your local bank about your car loan and prices. When you go to a dealer and choose a car, you can compare prices with prices offered by dealers and choose cheaper options.
4. Play online casino
This point hardly requires any motivation. Because if you take quick loans to afford to play at the online casino – well, then something in your financial planning (maybe even in your life) has gone very wrong. Never do that.
General rule of thumb for loans
A simple rule of thumb for debt: just take loans that are absolutely necessary and that solve a long-term problem. All other loans you should be very economical with. Literally.
When you are investing in something really big, like your own home or your college studies, the probability is that you have to borrow. If there was no possibility of borrowing, it would be almost impossible for young people to move away from home and move on without the help of parents. But loans always mean that you are in debt to someone else and that you have to repay the loan to the last krona, in addition with interest.