The fluctuating financial conditions and constantly changing tides make one more realistic in dealing with economic conditions. But many of them prefer to wait until they have enough savings to make a change or innovation in their lives.
For example, an entrepreneur, if he needs funds or capital for his business development, will either choose to wait for his savings, or opt for a solution for a loan.
For someone with a logical mind, they will definitely want to move forward, looking for a solution by lending, because with the change of trend the name of the business idea must have changed and will never be the same again.
Credit Lending As a Financial Solution
Credit lending may be a bit familiar in our society, with the huge cost of education, health care costs and other pressing needs making people prefer credit lending as one of their financial solutions.
Maybe the question on your mind is, is a credit loan necessary? It all depends on the thinking and the needs of everyone, but some of our society prefers lending credit to meet all of their needs, from car loan lending, home ownership credit, to consumer consumer debt.
So in this article we are going to talk about whether it is necessary to make a loan? As well as what benefits we can get.
1. Borrow Only Productivity Activities
Credit loans are not always considered negative, if you use them for productive things, such as educational expenses, business development capital, vehicle loans used for business activities and for home buying. For example, for the cost of education, with the current cost of education, lending is a solution that will ultimately improve our financial future. Higher education can also give us a boost in our future work.
2. Become a Proposed Fund
You will never know what will happen in the future, for example, when our condition is good, but when something unexpected happens, such as accidents, natural disasters, wife-giving, home renovations, which will certainly require funds that do not small loans, so a loan can be a solution when you need funds quickly if you don’t have enough savings to cover those needs.
3. Make Loans for Business Capital
At the moment the difficulty of finding a venture capital is a problem that is common to anyone looking to start a business, despite having a savings fund but the huge need for living like basic necessities to consumer needs makes it difficult for us to increase the savings we make for venture capital. In other words, a credit loan is very much needed as a way out of our problems.
4. Improvement of Community Buying Power
Credit lending is also a solution to help the government increase the purchasing power of the community and reduce unemployment. Of course, this would be beneficial for entrepreneurs who would start their business so that someone would be hired to help them out, in other words helping the government reduce the number of unemployed.
But aside from the benefits of lending there are some disadvantages if you take the wrong step in allocating these funds
1. Make Loans for Consumer Activities
It would be a pity if we were to take credit only for lifestyle, such as shopping, buying new gadgets and personal vehicles that could not increase our financial income in the future, even though those loans would appear to be wasted on installments and the interest you have to pay each month.
2. Borrowing Credit to Pay Down Debt
The other thing that will surely hurt you is lending in order to pay off another loan, like saying we are closing the hole but opening the bigger hole. Of course it will all be in vain and will even harm you in the long run. So it is wiser to use the funds that you will borrow later.
Make Credit Lending a Positive Action and Use It Right
Now you can decide for yourself whether it is necessary to make a loan and then what benefits you can get in the future.
Lending can actually be a positive activity if you use it properly, because lending is not always a bad thing, but you should also consider whether you can afford to pay a monthly installment along with interest provided to not exceed 30% of your monthly income, this is to keep you from having a lot of Debt in the future.