In finance, a loan is the lending of money from one individual, entity or organization to another entity, organization and individual. It is otherwise classified as debt owed. Most times, the principal borrowed is repaid with a set interest rate for the lender to benefit while engaging in the loan agreement.
If someone acquires a loan through an institution, the interest rate is charged on the principal and has a specific payment date that is usually in equal increments.
The truth is that no one really likes owing anyone or any bank, but sometimes it is necessary. Arbitrarily taking a loan out for parties or clothes is definitely not wise, however, not much persons have the money upfront to pay for a house, car, to repay student loans or even pay for an emergency health issue.
As someone’s monthly income grows, so too their expenses, which is natural. Things you may not have been able to do when you were earning JMD$50,000.00 a month you are now able to do with JMD$100,000. The issue lies wherever you become unrealistic or greedy which can lead to living above your means.
However, there is nothing wrong with yearning for or living a lavish lifestyle; however taking a loan to do so isn’t the way.
Here at SSL we do not bash loans as this is a medium in which people can build their credit, however we do not encourage foolish borrowing. Just like our recent launch of the Everything Fresh IPO, it was a great opportunity for persons to make some money on their principal. Who wants to miss an opportunity as such?
Everyone has to start somewhere in life, but not everyone was born in a wealthy family where funds are readily available for investment. It is key to weigh your options and make the right decision when it comes on to your finances as it can be to your demise.
Borrow only what is needed, find out information from different institutions and choose the best option that suits your needs with the lowest possible interest rate and consolidate your loans if you can.
Lowering your monthly payment for many loans by transferring all loans for many agencies to one, can allow for increased disposable income on a monthly or yearly basis. Additionally, you can even invest in securities that give growth on your principal or income that you can have access to your own funds instead of taking a loan.
Come into SSL today and speak to one of our Financial Advisors so that they can help you make better financial decisions and help you to achieve your financial freedom. We do make investing easy!
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