We all have debt in our lives. It is something that is part of life for most people. However, for some, debt really influences their everyday functions. That is because there is good and bad debt. We take a look at bad types of debt.
Bad debts are those that drain your money, are not manageable and do not give any possible chance in the future of ‘paying for yourself. They are also likely to have no realistic repayment plans and are often run up when individuals make impulsive purchases of products they don’t really need or borrow cash to pay daily bills. It’s certainly a bad debt if you can’t afford to borrow the money (for instance, you aren’t sure you’ll be able to meet the monthly repayments).
Here are some examples of tdebts that you should look to avoid at all costs. A basic rule to follow is that if you struggle ot pay off a debt, and its interest costs are affecting your quality of life, then it is most definitely a debt you should never have taken on. Excusing obvious long-term debts such as a mortgage or to pay for a motor vehicle, debts should be short-term in general.
When considering borrowing money, ask yourself the following questions. This will help you ascertain whether you ar emaking a bad decision or not by taking on the debt. If you find yourself saying no to just a couple of these questions, then it is probably best you avoid taking on the debt. Consdier other options.
Here at Moolr, we sell loans. But we do not push loans. We feel loans should be provided for those for whom it is a good idea. We will always advise the rejection of applications if we feel the borrower may struggle to make repayments. Or basically, if we think they are making a bad decision. We have a moral obligation to do so. We want our loans to help others, not hinder them. So if you are considering taking on additional and new debt, don;t be afraid to seek advice. Consider your options and work out if debt is the only path you can take, and only procee dif other avenues have been exhausted.