BORROWING can be a very sound option if the reasons and the need to borrow are right. For instance, unexpected medical expenses, funds for investment and the likes are usually good enough reason for an individual to take on the risk to borrow money. However, there are instances when individuals are faced with the temptation to simply borrow money just for the fun of it not knowing that it can create a very serious financial problem. The following are some of the times that you should never apply for a loan.
When a person is short on cash and he faces an unexpected financial dilemma it is understandable that he would have no recourse but to apply for a PERSONAL LOAN or any other loan for that matter. But being in a financial bind does not mean that you will jump and accept the offer of the first MONEY LENDER that comes your way. Having a financial crisis is not an excuse for you not to do a financial research on how, when and where to get your loan. In short shop around for the financial institution that can give you the best loan deal.
When You are Offered Pre-Approved Card
Credit card is one of the main causes why individuals file for bankruptcy. Be satisfied with just one credit card or at best with none. Credit cards are temptations for you to purchase anything under the sun but when the time comes for you to pay the bill, you find out you don’t have enough cash to cover the purchases.
Lenders know the people who have sizable loans with various financial institutions. If you are offered to have your loan re-financed, totally reject it. Refinancing your old loans will only lead to padded and increased interests on the loan not to mention the various fees that will be charged to you by the refinancing company. There is nothing bad in Borrowing money to get yourself out of a financial pitfall but financial problem should make you lose track on what your suppose to do when this kind of a problem crops up. Make sure that you will not make hasty judgment when borrowing money from other people.