Loans have their uses. It is good to know they’re available. However, they’re also an additional financial responsibility (and sometimes, a burden). Before making a decision on whether to take one out, think about the following:

Do You Really Need It?

It might seem like a silly question to ask since you’re already considering taking out a loan, but think about whether you actually need one. What are your reasons for wanting a loan? And can those reasons be fulfilled in a different way?

Do You Need as Much as You Think You Do?

The loan amount you think you want, do you actually need as much as that? Think about whether applying for a partial amount is an option, then making up the rest of the amount you want in another way.

Are there Other Alternatives?

Have you explored other alternatives such as looking for an additional job, selling certain things around the house, borrowing from friends or family, or cutting right down on spending?

It will take longer than getting a loan, and take more effort on your part, but think about if this is doable rather than a loan.

Can You Afford It?

Will you be able to afford to pay your loan back? Will you be able to keep up with your monthly payments? What are your other financial commitments? Will you be able to manage them all along with your monthly loan repayments?

Are You Thinking/Deciding with a Clear Head?

Have you given yourself adequate time to ponder over it? If not, take your time. Loans will always be there. What’s important is that you are able to think about and come to a decision (to borrow or not to borrow) in an environment that’s conducive to you being able to do so. Are you tired? Are you stressed? Are you feeling under the weather? Then it’s perhaps not the best time to give the possibility of a loan some serious thought.

Whatever your reason or reasons are for wanting to apply for a loan, whether it’s for a car, a house, or a new or refurbished office, courtesy of a company like Stoica Office Interiors, for instance, give it some thought. Then give it some more thought. Whatever decision you then make, at least you’ll know you gave it the time and thought you and it deserved.

Seek Financial Advice

You might want to talk to a financial adviser before making a decision. They could have alternative suggestions for you. It also helps to get a second opinion, rather than deliberating over it on your own.

Talk to Someone

Depending on the circumstances in which you are considering wanting to take out a loan, talk to someone you trust – a family member or a friend – not really for whatever they might be able to say regarding loans and finances, but to just have someone to talk to.

Finances aren’t just about finances. There’s you and there’s life.