A checklist of points to consider before taking a loanBy Toby Tunwase October 25, 2020
Whether you’re worth a million today or you’re flat broke, no one knows when they’ll be in dire need of cash. Sometimes the tides turn, and there’s an emergency to attend to; other times, it’s some urgent situation that triggers the need for extra spending. We’ve all been there—when we need to shell out money, but our account balance is uncooperative. In times like this, loans are a lifesaver.
However, you don’t just act on the spur of the moment and take loans like you won’t have to pay back. No matter the urgency, here are a checklist of points you should consider before taking a loan:
Careful thought and analysis needs to be done before signing on the dotted line for a line of credit. Are there other options, or the loan is your last resort? Is it compulsory you take a loan? Have you budgeted to be able to pay it back? Ask yourself questions like these and answer honestly? If unsure about your options, get some expert advice before taking the loan.
Where’s the joy in taking a loan that gives you sleepless nights later on? Most people are so eager to take loans that they forget to consider how much more they’d be paying back. If you cherish your sanity and are unwilling to lose it soon, ask about the loan’s interest rate.
You really do not want to take a loan you’d have to return while you’re still in the heat of an emergency. So, consider and try to negotiate the pay-back period before committing yourself.