We often have aspirations whose financial obligations are beyond our reach.
We may wish to buy a home, open a business, fund education, among other things, but our current financial capacity may be limited.
Instead of canceling the plans or putting them on hold until we gather the required financial resources, taking out a loan may qualify as an ideal solution.
For loans to serve their purpose effectively and align with our short-term and long-term financial goals and overall well-being, it’s important to do the following first:
✔ Evaluate your current financial situation
✔ Explore alternative sources of funding
✔ Clearly identify the purpose of the loan
✔ Research lenders
✔ Understand the terms and conditions
✔ Determine the total cost of borrowing
✔ Assess your repayment ability
✔ Plan for contingencies, to handle unexpected changes
