The importance of loans and credits in life

In today article, we are going to talk about how important loans and credits are at certainmoments of life. As you can see, without them, we would be, on many occasions, completely helpless.

The different ways of obtaining financing

Before starting, mention the different ways you can have at your disposal to obtain financing, since it is something basic to understand, later, what is the importance of a loan or a loan:

  1. Personal loan: This is one of the best known, and is used, for example, to buy a car or deal with any other unforeseen expenses for which you have no liquidity at the time. They do not usually have excessively high interests, but they are somewhat higher than those of a mortgage.
  2. Mortgage loan: One of the most common (if not the most common) in Spain. Basically, the bank buys you the home, and you have to pay back the money with which you made the purchase over the years, month by month, plus interest. These interests are usually lower than in other types of credit. In the event that you do not pay, the bank has the right to keep the house (and, depending on the type of contract you have, you will still have to repay the loan or simply handing over the keys).
  3. Microcredit: The purpose of microcredits is to finance small tools that are generally used in some trade. For example, a microcredit is useful if you are a plumber who has been fired from the company and you are going to start working as a freelancer. The microcredit can help you buy the necessary utensils. They have high interests since they are fast loans, but they are returned soon, and, in addition, they are easily accessible (online mini-credits are the order of the day). It is also a good option if you need urgent loans.
  4. Crowdfunding: Finally, we have crowdfunding. Generally, crowdfunding is used to boost business projects, but you can try your luck to see if people offer you their money for something more personal. The difference, here, is that, instead of receiving € 1000 from a bank, you offer € 1 from 1000 different people.
  5. Why should NOT you take out a payday loan? can help you.
  6. Given the types of financing available, we can move on to talk about what a loan is useful for, and why it is not. We will begin with those elements for which you should not get into debt, because it is more important than knowing so that you can get into debt.
  7. Consumer products of small value should be purchased with the money you have, not with the money you do not have. That is why we are totally against credit cards.
  8. Keep in mind that the interest charged on this type of small credits is very high, and the purchases you make will come out for an arm and a leg. So, if you were thinking of buying hands-free headsets by pulling a credit card, for example, take it off your head.
  9. The only consumer products that can be purchased based on credit, and only in some cases, are automobiles and similar products. And, of course, asking for a personal loan, which will have a smaller interest.

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