Loans provide us with an opportunity to access money we don’t have when we need it. The major problem, however, is that a lot of people find it extremely difficult to differentiate between a need and a want. The implication is that they borrow money when they do not really need it or to cater for wants and then struggle to pay the money back at the end of the day since most of their salary goes into servicing their daily needs and very important wants. This article will discuss the major instances when you should consider taking a loan.
Medical emergencies
Medical emergencies are often one of the most understandable reasons to request for a loan. Life is precious, fleeting and unnecessary delays in the face of an emergency could cost a life. This is why doctors are mostly admonished by most countries to start the treatment of an emergency case the instant it gets to the hospital irrespective of if the family have paid or while the healthy people representing the patient are still filling out the process required by the hospital. This is considering that in an emergency case, being neglected for a few seconds could result in the irreversible death of the victim. Even for stable patients, a few minutes to a few hours of neglect could make things worse. In order not to jeopardize your treatment or the treatment or the treatment of a loved one, if taking a loan is the fastest means of accessing the fund to cater for the individual, then you should be willing to take it. Fortunately, there are now instant loans that you could get within a few minutes.
For golden opportunities
Another instance when taking loans could be reasonable is when you are taking it for a golden opportunity. Imagine that you were saving to buy a car and you have saved about 50 per cent of the money for the car. You were already calculating that within the next 6 months, you would be able to complete the money and get the car. However, a store suddenly decides the sell the car at 60 per cent the price on black Friday or because it was returned by an owner who bought it for less than a week and decided to return it not due to a fault but to change with a different car. Because the change would have cost him some money on the car, the company was able to reduce the price that significantly. You could easily take a loan of the remaining 10 per cent to add to your 50 per cent to buy the car at 60 per cent the price and then probably pay the 10 per cent loan in the next 2 months with a 5 to 10 per cent interest. The implication is that you would have bought the car for less than 70 per cent of the amount including the interest paid in a condition that is as good as new. That would be better than paying the 100 per cent without a loan in 6 months. There is also the added advantage that you would get to start using the car 6 months earlier. If you want to take a loan, one of the places you can consider is freedom finance after reading about freedom finance reviews.
For profitable businesses
If you have a profitable business that you want to start, you could consider taking a loan. In most cases, it is not advisable to take a loan to start a business because your business might take some time to thrive. The time might go well beyond the time that you would be expected to pay back the loan. The implication is that you could get into trouble with the company you took the loan from and your credit score might get damaged. However, if you already have a profitable business running and you need money to expand it or you got a contract and you need a loan to run the contract and you are sure the money would be paid on time, and that you would still have significant profit after paying the interest of the loan, then getting the loan could be a wise option.
When it can save you embarrassment
Another instance when taking a loan could be reasonable is when it can save you from embarrassment. Imagine that something in your office suddenly got spoilt as a result of your carelessness and the best option is for you to fix it before the management gets to learn about it. This is considering that should the management learn about it, you would be queried and if they go ahead to fix it, the amount spent on fixing it would be deducted from your salary. This is coupled with the fact that the premium repairs company that your company deals with could charge more than double the amount you would have gotten a smaller but effective company to fix it. Considering the damage the query could have on your career and/or the cost you could lose, if you don’t have money and you have access to a loan, it might be best to take a loan to take care of the problem.
When an expense cannot wait till the end of the month
Another instance when you might want to take a loan is when you want to carry out an expense that cannot wait till the end of the month or whose effects if you wait till the end of the month could be more severe. Imagine you need to fix a plumbing leak in your house that just started and you need a loan to fix it. You also know that if you do not fix it immediately, the leak could get bigger by month-end, meaning it would cost more money and by then, it might have damaged some paint, wood and other items that you would also have to spend money to fix. Then it would be wise to take the loan immediately, fix it and payback with interest at month-end than to continue avoiding the loan.
