Exploring And Creation Of The Plan Before You Take Out That Loan

I have taken out many financial loans in my lifetime for one reason or another. Taking out a loan to help deal with a financial endeavor provides a little extra support and could keep you from hitting rock bottom in some instances. Here is my break down of the most commonly used reasons for people who take out loans: to purchase a car, houses, start up a business and so on and so on; bills, bills, bills and more bills. The purpose of this article is to bring you a new perspective on different ways to use the loan money.

One of the biggest issues in taking out a loan is paying the loan off; this is usually where all the drama starts. As I was typing this article, I stopped to do a Google search for, “Taking out a Loan”, and “Applying for Loans”. In both instances, I was surprised that the search results pulled up more reasons not to take out a loan and loan education more than results of loan companies, taking advantage of the search term and trying to offer you a quick and easy way to apply. My guess is that people have become more conscientious of the potential aftermaths of taking out a loan. A good plan can be developed from the Creditolo sites. The loan of the person should be taken easily through the implementation of the right plan. 

Now lets get into the new perspective; Loans (in my view), go hand in hand, with Investments. You take out a loan you invest the loan money into something. That is an even swap in my eyes; the balance becomes broken by your investment purchased. This means that after the even swap has occurred, what you purchase determines whether the swap was a good or bad trade. For instance, let us say that you took out a loan for a car to get back and forth to school. The car cost a couple thousand dollars and the loan has been set up to be paid off over a two year period of time and by then you’ll be out of school and probably working a career based job making a good annual salary and can easily pay the loan off, then good deal. The loan helped you make an investment and the investment was profitable enough in the end to help you pay the loan off in time as well as bring you profit by means of having a good education and a nice annual salary to support yourself with. This is a perfect balance (so-to-speak), and this is the first lesson that I want to give you all when it comes to the question of, should you take out a loan or not. Is the loan/investment going to have balance?

Giving the example and showing you balance between your loan and investment is one thing, but now I am going to blow your mind with this new innovative way of thinking. How about taking out a loan not to invest in what you need or want, but to invest in profit and repaying the loan at a faster pace. Why would you want to take out a loan in this manner? One of the main reasons to take out a loan in this manner is simply to insure that the loan is re-paid sooner. The second reason is to create the potential chance to have more than enough profit for what you really need or want to obtain in the first place. For example, you want to take out a loan for a car, to get back and forth to school but you are currently unemployed. Instead of taking out a loan to buy the car, you would take out a loan to invest in the purchasing of expensive collectible items for a lower cost from online. Just to turn around and sell to a dealer for a premium (keep in mind that you need to know that the dealer is willing to buy the items for a premium amount before you try to take out the loan). So your focus is paying off the loan in the most simplest of manners while creating profit to purchase what you intended to in the first place.

Things to consider

Anyone who has taken a loan out knows that there are a million miscellaneous events and circumstances that could make you default on your loan. This is the sole purpose that I looked into new ways to deal with loans for myself. When taking out a loan, and defaulting on my loans because of events that were un-related to my loan got the best of me, I knew that I had to be smarter. You may want to take out a loan and buy a house and get the house, and a physical condition could set in; but you may have to make un-expected co-payments. This could leave you short of funds and then guess what you have defaulted on your loan. Had you just been able to pay the loan off more proficiently or made a substantial amount of profit off your loan, then maybe you could have avoided the situation all together. What if you take out a loan for something and it becomes unusable in a short amount of time? Now you are paying for something that you cannot use, with no money to replace it. So now you see that taking out a loan is nowhere near as important as knowing that you can repay the loan even in the case of unexpected emergencies.

In summary, the loan you are planning to apply for is opportunity with consequences. Should you take out a loan can only be determined by your willingness to understand every aspect of paying the loan off and not defaulting on the loan. In most cases that I have been in, the loan would have been more rewarding had investing in repaying the loan and profit, in contrast to purchasing what I felt I needed or wanted. Do some research of things you can invest in and profit from and then consider taking out a loan for those purposes, get the loan paid off, then use your profit to buy your heart’s desires. Thanks as always —



Julia Arostegi lives in California USA. She took Developmental Communication at the University of California and finished her studies in 2012. She is currently the managing director of California Magazine. She is also a blogger, content enthusiast and a photographer.