When Borrowing Is Not Advised

Moolr are passionate about sourcing loans for those that require it, including those with a mixed credit history. However, we do not advise loans for everyone, as they exist to meet certain needs. In some situations, you should look at alternatives to such products. With that in mind, we take a look at when borrowing is not advised.

If You Are Already Struggling With Debt

If you’re struggling to make payments on credit cards, student loans, or other bills, chances are that borrowing more will not help. The opposite is probably closer to the truth, in that it will probably make things worse. After all, adding one more monthly payment to your life is probably a bad idea when you can’t keep up with the payments you already have. Consolidating debt is acceptable as long as it lowers your monthly repayment total.

When Borrowing Is Not Advised – For Certain Items

There are certain things in life that you should never borrow money to purchase. These include treats, entire weddings or jewellery. Borrowing money should occur due to a necessity in life, not because you desire something extra. This is not a problem if you are highly confident of making repayments, but if you are it may be best to wait and save up the required funds. That way you avoid the extra charges and interest rates. A bit of patience is required. For items such as furniture, holidays and pretty much any commercial product, it is possible to acquire an item and pay later anyway, at no extra cost. Many catalogue shops will offer such deals. Shop around and see how you can best utilise the situation.

Unwritten Agreements

By which we mean off a friend or family member. We would never advise that this should not happen under any circumstances. We simply advise caution and that you be wary. Te lack of a written agreement can be very troublesome indeed. If you are lending or borrowing with a friend or family member, get something written down so you know where you both stand. It is in the best interest of bot parties.

When Borrowing Is Not Advised – If You Have A Poor Credit History

We are not telling you not to borrow if this applies to you. After all, we are passionate at Moolr about sourcing loans for those that may have struggled to get access to money in the past. However, we are also passionate about sourcing competitive interest rates with no hidden charges or extra fees. Other companies may not be so accommodating. The fact is that if you have a mixed credit history, you are likely to pay higher interest rates tan those with an excellent credit score. Be aware of this and only proceed if you are happy with the terms and conditions of the loan. Do not take out a loan unless you are sure you can make repayments timeously, and can fit those payments into your monthly budget.