Pros and Cons of Bank Loans vs. Saving for Financial Goals.
Banking loans or saving at one's pace—which do you think is better with the current situation in the country? Getting a loan is sometimes useful to us, but at some point it can be stressful, depending on the type of income we get. Getting a loan from banks comes with some kind of interest, and some of these interest rates are so high that we might not be able to handle them. The interest rates will come with the value of the money we want to get, and this can sometimes not be okay with us.
When we need money, especially in times of urgency, and we do not know where to get it from, we try everything we can to make sure we get it, and when there is no other alternative, the next thing we see is getting a loan, which might not be easy to pay back.
At some point in my life, I began to understand that loans are not very useful, but they are also useful in the sense that getting a loan is quite interesting when you haven't paid it back and when you have the money from the loan to use for what you need, but paying it back is where we all find it hard because the money is not easy, and so the interest that has been added to it won't allow it to be easy.
As much as saving at one's pace is good, we sometimes need loans, mostly when we embark on projects that really need us to do that, but from my own point of view, I would say I sometimes prefer to save at my own pace. When you have a plan to build a house, and you see that you do not have any money at hand, the first thing that comes to mind is, "How do you want to do or carry out this plan without money?"
The next thing one can do is start getting some money saved for the project even before thinking of getting a loan. At first, when you want to build a house, you save up to get blocks, and then after getting the blocks, you save more money to get sand and all sorts of other things. These things are quite feasible, depending on the determination one has to do them.
Imagine that one goes to the bank to get a loan for this, and you acquire a loan of probably a million dollars. The time it will take to repay this loan will also be the approximate time it will take to save up for the money you need, and you are paying this money back to the bank with a huge interest rate, which would have been of great help if one had saved. The interest one is paying to the bank will also affect one's earning rate.
Like I said, loans from banks are good at some point and can be helpful when they are not too much because paying them back can be stressful. It has now gotten to the point that when you borrow money from banks, and default on the payment, you tend to pay more extra money to them because you didn't pay on time. This is also another way for them to get money from people, and this is what they also refer to as business.
What is your own point of view about bank loans and saving at one's own pace? Let's see what you feel in the comment section.
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