Beware of borrowing money to pay holydays
July 12, 10 by Mark75[AUTOMATIC TRANSLATION - SEE NOTE]
Summer holiday period coveted. But the economic crisis weighs on the pockets. The road is more than someone chooses to seek loans to finance holidays.
This choice, however, do not hesitate to define “dangerous” because this use of funds often suggests a misunderstanding of what should be the proper use of funds, paving the way to a dangerous abuse of personal loans. In fact, the loans can be used in a “healthy” only to address temporary liquidity constraints, not lack of resources. In other words, everything works only if the loan is required to solve the problem, “the money I will come in the near future” and not the problem “can not afford.” If there is no doubt that it is the latter case, or if you are not clear “what you are doing,” better not to ask the loan, especially in cases not “life or death” as a holiday .
Only in some special cases, the choice to take out a loan to finance a vacation is justifiable, and in some ways preferable. This is what might be called the holiday “uncommon” as may be the honeymoon or a vacation however “special” as you do every year (and maybe even every few years), and ideally for which has already set aside a significant share of capital. So in these cases the loan can actually be used for liquidity management, deferring payment (though you know you can do, since you have already earmarked resources).
In these “special circumstances” rule still applies to inquire about conditions of the loan, and compare the many alternatives available in order to find a solution suitable to their needs and possibilities.
