Is there ever a good reason to get a loan? This may surprise you but actually I think on the right occasion there is.
I really believe in budgeting, saving for and doing without if you can’t afford something. These approaches keep you debt free and not beholden to anyone. But there have been circumstances in my life where bank loans have been necessary. I
Shakespeare may well have said never a borrower or a lender be but they didn’t have cars in them days did they!
My first ever loan was a student loan. Ah those student loans worried me at the time but I needed to supplement my grant in order to be at University in the south and not have to pick up an extra job whilst trying to study. These were okay to pay back as I could wait till I earned a certain amount. Nowadays students have to take out HUGE loans to pay for University. I got full grants so only borrowed a little. Times have changed but I do believe the possibilities degrees can open up are worth it. I would do it all again and take a bigger loan if I had to.
My second good reason for getting a loan was to buy a car. It took me 16 years to pass my driving test. 5 attempt s. Well over 1000 lessons and now FINALLY I can drive (though only an automatic. I passed my test whilst pregnant, I knew nothing about cars and I was nervous. I wanted a really good, safe car not an old banger. I had no spare money. My car loan was manageable and necessary to get the car that was right for me. (It was red and shiny too and had been my dream for 6 years!)
My third loan? Well I borrowed the money to help someone out knowing they would and could pay me back within 6 months. It was the right thing to do but it was a HUGE amount and a bit scary. I would only have done this for someone I knew so well and loved and trusted that much.
Another loan we took was for a new boiler. We had no choice. We are trying to pay it off quickly.
The last loan I took was our mortgage which we are slowly paying back. I like being a homeowner I feel I am building a legacy for the children. I think it’s a good reason to get a loan. There are lots of loans to choose from.
Photo Credit. M.Markus
All the above were valid and necessary reasons to get a loan. I made sure I really talked it over with my bank. I took advice and made sure I could cover repayments. No payday loans, borrowing from friends or dodgy loan sharks or pawn brokers for me!
Loans should be well researched, necessary and absolutely manageable.