Being in a financial difficulty is not a pleasant thing.
Everybody wishes to manage by themselves, but life is not always as we wanted. So we might end up in a situation of needing to borrow some money.
Now, this may look like the best available solution, but it is a step you need to be very careful about. Even if the bank or a legal money lender is offering you a sum that is larger than the one you initially asked for, do think you can handle it. We need a lot of things, and extra money means more possibilities, but you may wake up one day finding that paying back all that sum is incredibly difficult. You need to consider the rates and the period of the loan, thinking that the amount representing the loan’s rate will never enter your pocket. It is like working for a smaller wage. So, how little are you willing to get paid?
The best way to get a loan is to make it over the shortest period possible, with the smallest rate possible.
So that you get enough money to deal with your issue and still have enough money to live decent until you cover the entire loan.
Now, the bank may try to extend the period, in the attempt to give you more money at a lower rate. But this is a trap, as they will only enslave you for a longer period. Instead of getting out of the loan debt in two or three years, for instance, they may extend the time to five or six years, promoting the idea that the rates are small. So do be careful, as you may end up working for half of salary for the next six years. Are you ready for that? Probably not, so don’t take the offer for more money than you need, since it is only a beautiful mirage.
When taking a personal loan or a payday loan, you must think about your monthly expenses on bills and car fuel, add to this the monthly rate for the loan and see how much money you have left to live for the rest of the month. From this money you will have to buy food, get some clothes if you need to and have some left for unforeseen situations, like getting sick and needing some medicines, needing to travel somewhere, getting the car to the service and many more.
Thus, you should always be able to integrate the loan rate in your budget, without ending up with an empty wallet by the time you pay all your expenses. This is why it is important to not let yourself be convinced by the great sum of money you can obtain, and always have a clear view of your monthly budget.
Having lesser money than usual per month, will turn to be an inconvenient issue. You will have to let go of many things you used to do, in order to have the necessary money to pay the rates and afford a decent living. So just take the money you need and don’t go overboard with the loan, because you will face the need of cutting a lot from your preference list, sticking to the strictly necessary only.