How to manage personal loan is an important life skill in modern world. Nobody wants to be in debt. However, there are times when debt is unavoidable. For the cost of children’s education, health costs or buying a house “forced” to owe.
Debt needs to be avoided. But that doesn’t mean we shouldn’t be in debt. Especially when you are in debt. One thing is for sure, debt should not bring new financial problems in our homes. Don’t let debt become the cause of our economic “collapse”.
Debt can happen to anyone. Supposedly, personal loan is used to cover urgent needs, emergency needs. Personal loan is not a way to fulfill consumptive needs. Buying things, you don’t need or following a lifestyle are absolutely no excuses for getting into debt.
Personal loan is allowed, as long as it is for things that are productive. Because anyone is obliged to pay the principal installments plus interest when having a loan.
How to Manage Personal Loan Wisely
There are at least 5 simple ways you can manage Personal Loan wisely.
Determine the purpose of the loan. Do not get into debt without a clear purpose. Moreover, debt for purposes that are not important or just to vent consumptive lust. Debt may be made for productive purposes. For example, to buy a house instead of living in a rented house.
Calculate the amount of loan according to financial ability. In loan, it is important to know that the amount of debt should not exceed the ability to pay. The amount of loan must be commensurate with our ability to pay it. Don’t let us not be able to pay loans if we don’t want to go bankrupt.
Discipline in repay loan. Debt will not be a problem if you are disciplined to pay on time. For this reason, a commitment is needed so that loan does not become a burden in the future. The allocation of funds to pay loan must be deposited on time, not to be used for other purposes.
Make sure the maximum loan installment is 30% of income. You should pay off loan installments of no more than 30% of your income. Keep in mind, you have other needs that must be met. Don’t let our wealth spent to pay off debts. When that happens, it will add to the problem. You need to eat, you need to pay for electricity, you need transportation, and other living operational costs. Loan repayment, not more than 30%. Never “dig a hole to cover the hole”.
Don’t pay off loan with debt. Make sure every loan you have can be repaid according to the time period. Don’t go into new loan before the previous loan is paid off. Don’t pay off loan with debt. Every loan must be cleared first before borrowing again. Because the accumulated debt will definitely cause new financial problems.
The five ways to manage personal loan wisely above are very important to apply to Personal Loans. Many lenders currently offer personal loan. As long as it is in accordance with the intended use, personal loan can be chosen as an alternative to financing various needs, including home renovation costs, education costs, or wedding costs.
Personal loan is often chosen because it is easy to administer and fast in approval. But no matter how big your personal loan is, your ability as a borrower should be considered. Don’t let personal loan become a burden in the future. Use personal loan wisely, so that debt can be managed properly.
Debt is not impossible. But debt must be managed wisely. Start to make priorities and financial goals in the future using personal loan.
