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Do you take loans at the drop of a hat?

  1. thirdmillenium profile image61
    thirdmilleniumposted 7 years ago

    How good are you at repaying?

  2. frogdropping profile image84
    frogdroppingposted 7 years ago

    Nope. Excepting a mortgage and yes, I always repaid as per the mortgage agreement.

  3. G Miah profile image80
    G Miahposted 7 years ago

    I used to take loans out at the drop of a hat, and repay them regularly. That was a few years back. Since then i have been spending only what i earn, and haven't spent on credit since two years ago. I haven't got any loans either, so i am in a good state at the moment.

  4. Mrs. Moneypants profile image61
    Mrs. Moneypantsposted 7 years ago

    Institutions offer loans in order for them to make a profit.  They take calculated risks thinking that the amount of interest they collect will sufficiently outweigh the risk.
    For people that are very disciplined a great way of making or saving money is to take advantage of the low interest loans or loans with teaser rates (ie. very low rates for 6-12 months).  For example, i can borrow 5K at 1% for 6 months and put it into a 6 month GIC at 3%.  I make 2% after 6 months.  However, if I can't pay back the money after 6 months the interest rate might jump to 10% and i will immediately start to lose money.

    If you are very disciplined about paying loans back (and on time) take the loans.  If you have a tendency to miss payments or be late with payments you should never take a loan.