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?
- Can you afford a repayment?
- Will a loan help you reach an essential goal?
- When will your financial situation improve?
- Are you bound to a lot of financial commitments?
- How is your credit score?
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.