wahlau's online hut

Money is an annonyingimportant issue. You get headache when you have too little of it, and you also have problems when you have too much of it. But we should look at bad times, when we really need some extra moolah but no where to get them. Most common solution - Loan.

Taking loan means having some money in hand, which does not belong to you. You must return them back to the lender, with some extra money as interest. If you fail to do so, the interest will grow. After all, that is how most banks make money. If they do you such a favour, you must of course appreciate it, right? :)

Talk about loans, there is a type of loan called
secured loan. Crediters will pledge some assets such as cars to get loan, while lender can offer you a better deal since if things go bad, the lender can sell off the assets to gain back the money loaned. The unsecured loan , on the other hand, is not guarantied by any asset. Hence the risk for the lender is higher, and you usually need to pay up more interests. Typical unsecured loans are credit card debt, bank overdrafts, and personal loans. Secured loan is a good choice if you with to have bad credit loan, which means you have bad credit history. This part is important - Despite what others might think, you can still get a loan even if you have some bad credit history, because you can use the loan to make changes to your current financial situation. The idea is perhaps good. Everyone deserves a chance.

Eventhough i don't personally encourage loan and credit, but i do not think they are evil. Loans are basically neutral. Nowadays you can't afford everything. Not many people can afford to buy a house or car with cash. So we will need loans. The issues with us is the mindset. Many who had problems with loans or bad credit are people who do not understand the philosophy of credit. At the end they end up with bad credit, and will have lots of difficulties getting out.

Loans can be utilized as a good help and tool to our planning. If you view and plan it well, loan will at least reduce the stress in your daily life and you can focus better in your work to keep up with your productivity. Imagine if you need to buy stuffs that exceed your current income, and you somehow squeezed the cash out, you might realise that your days until your next pay check are going be more stressful than usual. Why? you constantly remind yourself, consciously or subconsciously, that you are short of money! If the credit interest is fair and affordable, taking a small amount of loan will reduce your stress level until you pay up. They key is - we do not like insecurity. We will get worried that if some emergency take place, we will get into trouble since our account is empty. The stress you will experience will eat you up. Either you don't buy/pay for that something, or you better make sure you have some cash in your pocket to do away the stress!

When you take up a loan when you know you can surely pay back on time, loan is a friend. When you can buy only things you need instead of what you want, mostly likely loan is also a friend. When you insist on taking only a loan at a time, loan is a friend. 

Wisdom is the ultimate guideline to our financial planning. Think over it and get advice from good people, you will be in safe hands.

*this is a sponsored post, but i have something to share too :)*