These days, borrowing money can be as easy as a swipe of the card or a telephone call. Perhaps in some respects it can be just a little bit TOO convenient to get Personal Loans.

So how can you make sure that you aren’t being frivolous, that the loan you want to take out isn’t going to be wasted on something that is bought today and gone tomorrow?

First of all, make sure that the item or service you are purchasing is classed as a ‘big’ or ‘bigger’ ticket item. If it is a loan for something that is used once, like a dress for a wedding, or for a party, it is certainly bordering on the frivolous. After all, you are going to open the door of your closet to look at that dress every day for months, and you WILL remember your loan payments for sure, each time when you make them.

Second, if you have to use a loan, this means that you can’t get the money by saving the amount. Too often, borrowers want the easy out: to get the item without making the effort. Unfortunately, trying to take the short cut leads to a long detour afterwards. Those interest payments will cut deeper and deeper each time you see how much you are paying.

Last, if you are sure of your purchase, and you have decided to borrow rationally (not using your emotions), then it is time to spend a little effort researching better deals, better companies and better rates so that you make an informed decision. Of course, you could use this time to find a better purchase or cheaper price, too!

Practice good borrowing to avoid having poor credit loans. In that way, borrowing money helps you in your life to achieve the things you want, and to avoid the pitfalls of ‘bad’ borrowing. Have you ever borrowed money and regretted it? I know I have: borrowing GBP400 to buy an Amstrad PC, for one. I’ll share that story later.

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