Well people often approach banks for loans due to some house loan or car loans or business loans, but recently we found out few desperate lads approaching bank for funny business loans. Approaching a bank for a Plastic Surgery loan or paying a credit card debt are some of the examples. People nowadays have become so addicted to shopping that sometimes or I must say often end up in lending money from either the bank or Credit Card Company or eve a friend, just for the sake of some stupid expenditure.
- Wedding: Well to start with as it is a wedding season, this particular fact made it on the top of the list. People nowadays believe in classy and expensive wedding, despite of the fact that not always there pocket allow for such kind of events. But still many couples don’t mind starting there lives with a debt on their heads. Therefore they either approach banks or credit card companies come to their rescue at such situations.
- Loan for a friend : Well mostly it is a girlfriend or a boyfriend, people take loans for their may be spouse, without even giving a thought that what would happen if there is a breakup between the two. If you are lending some money to your friend then consider that money as a gift and don’t expect any paybacks, If you get a payback then consider yourself lucky. But going in a loan for your girlfriend is totally a blunder because God forbid if they set apart then the person on whose name the loan is legally has to bear it all.
- For the festival : In US every year hundreds of people take up loans during the Christmas like weddings. Going for a loan, just to give gifts on Christmas is the dumbest idea. By doing such a stupidity you just make your financial status more worse. So instead of seeing your kid’s sad faces on a Christmas morning or ging in for a loan just try and plan about it. You can easily plan and save some money by just spending smartly along the whole year and can save enough for your Christmas fun.
- Loan for New Car : Paying money for a commodity that looses its value with every passing month is something which is just unacceptable. If a person goes for a car loan he should first analyze the fact that half way through the car loan the real value of the car got depreciated by 40%. Therefore after the half payment you’ll pay more than what the actual cost of your car is. So instead of buying a car which is not worth the money you are putting in its better you save that money in a savings account where at least there is some appreciation.
- Investing in stock market through a loan : That is so dumb, you are actually taking a loan for an unpredictable commodity. Stock market is for those who have those extra bucks in there pockets and can take chances on the losses. But how can you justify something that is taking debt to fall in more debt. Instead of taking loan for a stock market gambling its better you join a decent job and work there earn some money save it and then invest it in the stocks, that too after you have planned your future expenses.
- Pay Day loan : How can you go for a loan and pay the interest till you get your next pay, that is so lame, instead of doing such crackpot thing why don’t you save money from your pay and spend wisely and avoid being into debt just for the sake of fun spree.
- Plastic Surgery : People go for loans when they need to invest in something which probably will cover the loan amount and the interest on it too. But how would you pay back by going in for a plastic surgery that too under a loan, unless you have a job that will pay you extra for your enhanced looks I don’t find any other relevant reason for such a foolish financial planning.
- Gambling : People playing games worth thousand of Dollars through there credit cards, on loosing get under the credit card debt, how smart is that? Well this is a very common scenario these days casinos run on such fools. You can afford to gamble only if you are a millionaire and do it for fun sake, but if you think that you are going to earn some big amount and live a rich life by gambling then it is again a very dodo act. In the end you’ll be just left with no money and heavy credit card debts on your head. So better don’t go into gambling.
- The pre retirement loan : People in US often go for a pre 401K loan which is they borrow money out of there retirement plan which the government has for every US citizen. This act gain is a very disappointing one as this not only makes you underprivileged but also takes your retirement security away. The money from this retirement scheme is not taxed until it is withdrawn, therefore a 10% early withdrawal penalty is levied on whatever the amount is withdrawn, this stupid decision often leave people into a more complexed tax conditions.
- Vacation Loan : Vacations are the biggest stress busters, but how can someone start a stress busting vacation with a debt. But the shocking fact is that people are doing this and are doing this without even giving it a thought that they are going in for a more critical financial hell. And they can never be stress free even if they are on a loaned vacation. So its better that you work hard save money and then plan the other things.
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