Almost everyone at one time has a need to borrow money. Buying a home, paying a child’s education fee, starting a business and buying a car are some of the common reasons why people need to borrow. But before that, you need to know some smart ways to borrow money, Read more and find explanations.
Through a loan, you can build your assets and acquire the things you need to improve the well-being of life. However, there are some key rules you must hold in order to prevent yourself from getting caught in financial trouble. Remember that whoever gives you a receivable will expect the money back. We have some tips so you can get the most profit from your loan, without having to get caught in debt bondage.
1. Borrowing from a Bank or Financial Institution
– A smart way is to compare multiple Banks and products to get the best deals and discuss the details before you sign any official documents. Once you decide to take out a loan, tighten your monthly expenses until the debt is paid off.
– A less intelligent way is to borrow more than you need. The extra amount will only add to your payment expenses over the life of the loan.
2. Borrowing from Credit Card Issuer Company
– A smart way is to use your credit card as a means of payment only when you believe you can pay off the debt in no time. In addition, avoid credit cards that promise 0% interest, since these promotions are usually only for short-term solutions such as balance transfer.
– A less intelligent way is not to use your monthly budget or Emergency Fund to finance unexpected expenses, but instead, take cash by credit card (cash advance). You will be charged a high-interest rate and the interest is calculated from the first day you take the cash. Never consider your credit card limit as your money.