You Can’t Win Them
October 18, 2007 – 9:13 amI am sure you already know my stand on loans. Never take one out if you can help it, except for home or car loans.
What I am referring to is personal loans that may require you to provide collateral. Loans are not for everyone because the interest rates are very high.
Actually, you can’t win them. If you take out an unsecured loan which does not require you to pledge your property, most probably, the interest rate is higher than secured loans. In secured loans, you will have to provide collateral perhaps with your house grant or car ownership certificate.
Sure, your interest rate is, or should be, lower, but it is very risky if you default on repayments as the creditor will have the rights to place a Lien against your property. If you are not able to come up with the money to pay them off within a short period of them, you will lose your property.
Nowadays, it is so easy to apply for a loan. I see many of my friends give in to the temptation of fast cash on their hands but they do not for a second evaluate their finances to see if they are able to repay that sum plus interest. Miscalculation could lead to more serious financial woes.
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