Shakespeare said:
Neither a borrower nor a lender be;
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.
If you are familiar with the song from Carmen via Gilligan’s Island, you will be familiar with the additional words, Do not forget. Stay out of debt! These seemingly wise words and stern warnings are ingrained in our culture. Even as we load up the credit card, we feel a small amount of guilt at the thought of racking up debt, even manageable debt.
But no matter how guilty you have been made to feel about it, at some point, you are going to have to borrow some money. In the current configuration of society, it is almost impossible to avoid it. And it is not economically established that we even should try to avoid it.
The wealthiest people in the world borrow money if only to avoid risking so much of their own. President Donald Trump has been one of the biggest celebrity borrowers. And look where he landed. You don’t have to be one of the richest men in the world to need a bailout. Don’t be afraid to take out a loan in the following situations:
When the Bill Comes Due
When the money ends before the month, bad things start to happen. Your lights get turned off. Your indoor plumbing dries up, and eviction notices are being written by the holders of your lease or mortgage. It is a bad scene best avoided if possible.
For some people, this is the routine. If you are in that category, don’t try to fix it with a loan. That will only compound your problems. You need a lifestyle change. That is not something a little more money will fix.
However, if this is the kind of thing that doesn’t normally happen to you, then you are a good candidate for some type of installment loan. There are a few easy installment loans worth considering. Make sure you weigh the terms carefully.
But you owe it to your family to be sure that the rent is paid and the necessary services are continued. It happens to everyone at some point. Don’t let shame or fear stop you from getting a necessary emergency loan. Just don’t make it a habit. It can be a hard one to break.
When You Are Ready to Buy a House
Generally, you don’t have to take out a loan to rent an apartment. Move-in fees can get pretty high with hefty deposits and pet fees. But it is the type of thing you can save up for when you know a move is coming.
Buying a home is different. You probably don’t have $200,000 in the bank. You are going to have to borrow it with reasonable repayment terms. For that, you are going to have to jumpstart your credit score. The lowest payments go to those best able to prove they don’t need it.
There are some excellent reasons to buy rather than rent. It is not for everyone. But it may be for you and your family. You have plenty of options for this type of loan. But the best options are reserved for those with the best credit scores. So take the time to rehab your score before applying for a home loan.
When Investing in Yourself
Maybe you would have a higher position had you completed another degree. And perhaps you still can. But going back to school is expensive. If the added cost is not in your budget, expand your budget with a self-improvement loan.
It doesn’t have to be for expanded education. It could also be a small business loan. It is for whatever it takes to get you to the next level when you can’t get there any other way.
Don’t let either Shakespeare or the Skipper talk you out of a necessary loan for emergencies, a house, or self-improvement. You will know when it is time to borrow. To thine own self, be true.
