There’s nothing wrong to take a loan.. but..

Did the title catch your attention?

I know it did when I first saw it appear on my Facebook newsfeed.

I hope you didn’t miss out the end part “first, ask yourself these 5 questions”. What are they?

  1. Can you afford a repayment?
  2. Will a loan help you reach an essential goal?
  3. When will your financial situation improve?
  4. Are you bound to a lot of financial commitments?
  5. How is your credit score?
Image credit: Vulcanpost.com

I don’t deny that at times it’s tempting to take a loan, but the 5 questions will help you evaluate if you truly need the loan and if it is essential.

Quite often, it’s good to consult your financial planner/consultant: to review your finances, especially your cashflow, and evaluate what would be a feasible solution for you.

Sometimes, converting your whole life policy to a paid-up term insurance would be a feasible option to ease your cashflow.

Or a partial withdrawal from your investment-linked policy can be another option that can be considered.

Point being, there can be more feasible options than taking a loan. Yet, it is also possible that taking a loan is still necessary.

Consult your financial planner/consultant. Let him help you decide what would be the best solution for you.

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