When BORROWING money, think carefully where you use it for. When people crave to buy something expensive, their first impulse is to use their CREDIT card. Some would even apply for a personal loan singapore lowest interest rate just to satisfy their need to possess something luxurious. When you borrow money, make sure that you will spend it for the right reasons. The following are just a few of the things you should not purchase with borrowed money.
Borrowing Money to go on a Pleasure Trip
Even if you feel that you will be able to pay back a sizable loan in the next twelve months, never borrow just to finance pleasure trips or vacations. Can you imagine yourself wasting a sizable part of your monthly income paying back in installment a loan and its interest which you used to pay for a two week holiday? Sure you had fun; relaxed; experienced and seen new things but are two weeks of these things worth the financial pain and sacrifices you will need to shoulder within the next twelve months? The best solution to spend and have fun is not by borrowing from a MONEY LENDER but to be patient enough to save for it.
Never Use Loan Money to Buy Gifts for Friends and Families
It is really a very nice feeling to see how happy friends and family are when you give expensive gifts to them. But is it really being honest to yourself that you would go to the extent of borrowing large sum of money just so you can give them away as gifts. Let’s be honest with ourselves. One of the reasons why we give expensive gifts is to impress other people, friends and even families. Maybe other people or friends won’t think twice about accepting your gifts but I’m sure your family would be sadder than happy knowing that you will be in debt up to your neck paying off the loan used to buy those gifts.
Other things that you should not use borrowed money for are gifts to yourself; jewelries and gadgets, parties and vain medical expenses like plastic surgery.