The following is a guest post. Enjoy!
‘You only live once’ is a motto that many people live by. Determined to get the most out of this brief time on the planet, lots take out loans to pay for the must-haves in life. Some of these choices are wise, others, well, require a little more thought.
Here are just a few of the main reasons why people apply for personal loans, including a few cases where you’d be forgiven for holding your head in your hands in disbelief.
Paying for a wedding
Understandably, no one wants to spend the happiest day of their life in jeans and T-shirt or treat their guests to a round of sandwiches after the ceremony. Nor do they wish to honeymoon at the local caravan site, so many apply for a personal loan to cover wedding expenses such as clothes and catering or the honeymoon. In recent years, Middle East destinations such as Qatar and the UAE have become popular post-wedding getaways.
On the flip side, some of the wackier borrowers out there don’t just use the loan to pay for the wedding. They use it to pay for an overseas bride as well, including transport costs!
The first thing some people do when they step into a nice new home is knock a few walls down and whip paint over the hideous colors the previous owner has decorated the house in. Extensions, refurbishments or even plain expensive repairs are all reasons why many people step into the bank manager’s office.
But then there are others who would rather live in a spaceship than a home. Courtesy of a personal loan, die-hard Star Trek fans have been known to transform rooms of their house into something resembling the U.S.S. Enterprise. That’s life, but not as you and I know it.
Starting up a business
Although there are business loans available for budding entrepreneurs, determined to get their hands on as much capital as possible some people also take out a personal loan to invest in their business. Passionate about their new endeavor and the prospect of profits, they feel the extra debt is worth it.
Of course, there are businesses and there are businesses. Some out there are buying rare or exotic animals on the Internet, such as poisonous snakes, and selling them at a profit (normally prices that cover the loan repayments). Others choose to buy rare antiques with their loan and, again, sell that at a convenient, loan-covering price and then some.
Some people are lousy with credit cards and bills and end up taking a personal loan to cover such debts. Felling debts in one almighty swoop like this, though, helps because they can reconcile them into a single, more manageable payment.
However, there are times when people should avoid spending the bank’s money, such as on gambling. On a roll on the horses, greyhounds or the blackjack table, some actually apply for personal loans hoping to repay it with the drop in the ocean from their theoretical gains. Not the best of ideas is an understatement.
If you’re looking to get the most out of life and need to request a personal loan, think carefully about the reasons for doing so. Life is for living, most certainly, but worrying about how to make loan repayments after living for the moment is no way to spend your days. Borrow sensibly and the future remains yours, financially and non-financially.