Monday, July 14, 2008

Loans: Are they ideal in all situations?


Back when I started college 25 years ago, it was extremely difficult, if not impossible, for most students to get their own credit card or loan to pay for school expenses. Now, credit has become easier to come by. However, in what cases is taking out a loan a good idea and when is it a financial mistake? Buying a car, paying for college, buying a house, purchasing textbooks, getting a new iPod? When should people just save money and pay for an item in case?

Share your ideas and experiences.

Randall

28 comments:

quynhtrangdana said...

my mother is a penny picker while my sister live paycheck to paycheck. one never splurge on an expensive cloth or dinner but the other one always maxed out her credit card. i don't want to like any of them. that's why i have to budget carefully to make ends meet.it's hard but i will keep track of my income and expenses

Marisol said...

Hi! Well in my point of view, I consider that you should get a loan just when you can pay for it. For example, If you are in university far from your family and you have an accident or maybe you need to buy something that it is so important you can use your credit cards. The core of this is that you should buy just that you can pay. In other words, is better if you dont have the money, dont buy that and wait until you have the money to buy. In addition, be careful of rates, because sometimes if the economy of your country is not good, you can buy something today and tomorrow you need to pay two times for the item and it is caused by the bad economy and the movement of the rates.

Anonymous said...

Hello my name is Joel and I think you should only buy things that you can pay and also the things you need.

Anonymous said...

HELLO..............I´M MELONI I JUST WANT TO SAY YOU THAT EVEN WHEN YOU DON´T HAVE MONEY TO PAY FOR SOMETING IF ITS VERY VERY IMPORTANT YOU CAN GET A LOAN TO PAY OR BUYING BECAUSE MAYBE IN THAT TIME YOU DOESN´T HAVE THE MONEY TO PAY IT.... BUT FOR THAT WHERE INVENTED THE LOANS BECAUSE LATER YOU WILL DO!!

Anonymous said...

I think that you have to buy the things that you are going to use and the things that you need and to sepen much money in the unusual things
sebastian g

omarmosqueralozano said...

I think we have only to buy the things that we really use and sometimes things that we can enjoy but no to exaggerated buying all the new ipods or all the video games.

Robert said...

I think that the way that the people use the credit cards are bad. Becouse they think that in the future they could pay all the consumes of it, but they don't take mind the dangerous that it could be. For example if they don't pay at time all the debt going to acumulate and it at end will be a big acount. so the people that use credit card have to be very carefully.

hande said...

today, while every penny has an importance,loaning is unreasonable. because people are already in debt and the banks are likely to try to make them starve. maybe i m so strict about this matter, but, as we see many of those-suffer from credit cards or loanings- what can we think??? today's motto: buy if you have money or dont!!!

Anonymous said...

Loans is one way of struggle in order to survive in this world, thus these loans a great help in all situations?

Some people says no man in this world live without a loan. Maybe yes or maybe no, but mostly of people nowadays depend on loans not only employees, businessmen, companies or even the government having loans to pursue their aims to succeed their wants and goals that could help their present situation. Whereas some of employed parents buried of loans because of their needs to send their children in school especially in college. Wherever loan sometimes makes the life in hell if it is not properly manage and to control the self of being dependable of loan.

Therefore, to make a loan is not bad, it will save needs but it is on you how to control it. The only thing to make is, be wise to use your money to live happy and have a peaceful life.
Lyn

Barcelona4ever said...

today, while every penny has an importance,loaning is unreasonable. because people are already in debt and the banks are likely to try to make them starve. maybe i m so strict about this matter, but, as we see many of those-suffer from credit cards or loanings- what can we think??? today's motto: buy if you have money or dont!!!

Nathália said...

Nowadays with all the facilities to purchase something many people are blowing their money and after this do not know how to pay the debt.

For instance, make a loan could be the ideal in a situation that you are in a hole and need to pay your debt. However, make a loan to pay any debt could be the beggining of a new debt that will not stop anymore.

For this reason, I think that make a loan could be very dangerous for people who do not have a budget well defined, because they will not have enough money to pay the loan after.

To illustrate, I have an aunt who since I was born had spent a huge amount of money and keep in debt with all the family and also the banks. In addition, my aunt do not though about her mistakes in the past and continued spending a lot of money.

To sum up, make loans today would not be the ideal in most of the situations, because it can be dangerous for people who do not care and blow a lot of bucks purchasing things.

Anonymous said...

I think it's necessary in case you need to invest some money to increase your asset and you sure can payback and have regurlar income. But baically I don't agree with loan for consuming things cloths,travel,cars.etc. I'm kind of feeling safe when I have some money deposited just in case rather than spending them for short time pleasure.

Cintya said...

Hello! i have never try to get a loan but I think if you are going to do it, should be only because you really NEED the money. if your going to spend it in a new I-Phone or something like that, dont. With the time and if you are going to work to get it, you will.

Anonymous said...

I think that people should be pinching pennies whatever the situation. It is imperative not to be in the hole. People should definitely have a knack to avoid asking for a bank loan. But life is so expensive that one day or another, one does need a bank loan. In the end, one should only ask for a bank loan provided he or she has the money to pay their debts. Curbing expenditures is imperative.

Prathap B R said...

Hi everyone,

Availing loan aid without any collateral and security deposit is possible now with the availability of cash advance loans. If you are facing small financial crunches in life, then this financial option has the capability to resolve all crises.

But it depends on the situation " when to apply for a loan?". Loan should be taken for purposes like education etc which are essential,instead of buying luxurious things. Also it depends on the situation " Whether we can repay the loan?". Planning is required before applying for a loan. You should be confident enough you can repay the amount in the given time.

"Think before applying for a loan whether it is really required"

Thanks & Regards
Prathap B R

Anonymous said...

Taking a loan is never a good idea untill unless ,you are having a burning need of something.I mean taking loan to purchase the items for just leisure is not a good idea at all,because it hinders a persons progress in long terms.if you are taking a loan to have a ipod.It is an unnecessary expenditure.Instead cut down your monthly wasting and save money to buy one.
And using credit card most often is also not a good idea.untill unless the cash you are paying is not a big amount that you can not handle in cash or you find suddenly yourself out of cash purchasing some thing.

Adriana said...

Some economist used to say that when we are interested on rent a house for example, we shouldn't direct over than 30% of our income monthly to that. My idea about it is there is no problem to ask for a loan as long as you decide for a payment plan related to your real financial life. But if you are strapped for cash, maybe just pinch pennies can help at all. Supposing your money is running out because you don't have a budget, to get a loan could drive you straight to the hole. So to ask or not for a loan boils down to How much control you have on your money.

Anonymous said...

Hi !

If you think you have found that rare gem, be careful make yourself a budget to see if you can manage the monthly payments that will come with it. You need to do your homework before you buy a vehicle.

JM

Mariam70 said...

Hi!My advice is better avoid getting loans so that you'll be free of all worries on how to pay for it.The best thing to do is to save little by little until you have collected the right amount for the things that you need.But if you have no choice but to get a loan,especially a housing loan,be responsible enough to pay the monthly amortization.Learn also to live simply,being content with what you have.Don't be an impulsive buyer.Hate borrowing money but be a good payer and a cheerful giver.

Tatiana said...

Loans are good idea at the first sight for regular people but for banks it's another way of etting money. I don't remember seeing happy people with paid loans in my country. At this point my opinion is do not mace credits or loans unless it's unavoidable. My family used to be strapped on cash as a result I am pinching pennies. But at the end of a day keeping track of money is most useful thing to do. If I want to buy something I sleep on this idea and next day I understand that this thing isn't worth buying it. I also tried to make some purchases in case. As far as it was a food all of it got spoilt and this idea became useless for me.

Anonymous said...

HI i am only from TAIWAN.I live in the city Taichung.In my city,we have six department stores.i like department stores very much because there are a lot of fational clothes and a lot of famous restaurants.But i seldom go to department stores because some of the things in there is so expensive that i can't buy it. I usually go there when there is on sale.

Sara Maria said...

I think the most important thing when you get a loan is the budget. if you are thinking about education, you must be sure where and how much it costs. buy a new I-pot or I-phone or even a BB is not important at all when education is in your hands.

be sure you spend the money wisely.

anny said...

HI MY NAME IS ANNY AND I THINK THAT JUST WHEN YOU GET YOUR OWN MONEY YOU CAN SEE THE SATISFACTION OF BE INDEPENDENT AND WHEN YOU ARE LIVING ON YOUR OWN IS JUST ABOUT BE RESPONSABLE AND GET IN THE FIRST PLACE THE THINGS THAT ARE REALLY IMPORTANT LIKE THE STUDY AND ESCENCIAL THINGS LIKE FOOD OR SOMETHING LIKE THAT.REMEMBER THAT THE STUDY IS VERY IMPORTANT

Paola Mateus said...

I think that a loan must be a very special case. I just would do it in case of buy my own house or my own business. Other things we can buy them with a periodical saving of money: it is the same proccess but without rates.

Anonymous said...

Hello! my name is Lady

I think that credit cars are not necesary to use in a society where people believe in their habilities to get things with their own money, to be patience and used to save money.

So in this consumption society I consider that credit cars are a big problem like dangerous virus that make people superficial and die in life.

We have to be very carfully with that..

Bulgarian User said...

Hey there,
my name is Georgi and I think that we should keep track on all expenses we have. I am a student in my last year, married with a little boy, working hard on 3 places and paying a mortgage. It's very hard for me and my family, but in 10 years everything will be great! Be wise!!!

Anonymous said...

hello my name's emanuele from italy,i almost never asked a loan,only once,when i bought my new car,7 years ago.fortunately i've always had a job,so a bit of money...too much people for me takes advantage of loans,buying useless things...so i think that the loans are good,but only when really need.byeeeee

Anonymous said...

hi there
to get a lone is get in troubles..i did a lone three years ago and i do regrett till today!! payed the double..wasted the money..and felt unplessed!!
hazem

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