How to decide if you really need loan?
When making a purchase or an investment if you do not have the resources, it is likely that you need to think about applying for a loan as a way of financing.
The problem is that, in many cases, there are entrepreneurs who do not think if they really need to purchase or invest in something, and if need fund, at what cost and what interest you are getting it.
But beware! Because if you do not choose well, it may end up unbalancing your finances and seriously jeopardize your economy, as well as those around you.
You need to check your resources first if you have any other way that will make it possible. You need to study what the state of your finances to check if you can afford a purchase or expense or you really need external financing.
The questions that we propose below will be very useful to perform the necessary analysis and reduce the dangers of excessive borrowing.Remember it is absolutely vital that you be honest when making this reflection, and self-deception can only lead you to bankruptcy. Respond and evaluate if you really require that loan:
• Do I need to make this investment?
• Is it a need or a fad?
• Is it an impulse deal? If I wait a few days, would I still love making that purchase or expense?
• Is it good time to do this?
• Can I wait and save for this deal?
• Do I need to borrow?
• Can I afford to borrow?
• How much do I need?
• What are the conditions: interest rate, fees, etc..
• For how long will I be paying the loan?
• What will be the fee that I need to pay?
• How much money will return in total including fees and interest?
• What will happen if I pay any fees?