What you should not do with a bank loan
Who says debt is bad? Well in my opinion, debt can be good and it can also be bad. It all depends on the actions that will determine the outcome. People work into the bank to borrow money because of one thing or the other.
Bank loan are good, but sometimes before you borrow, you’ll need to investigate before you do it. Sometimes when the banker says your interest is 12%, he’s not lying, but he’s not telling you the truth.
Well there are things that you should not use your loan from the bank to do. I must tell you this is really serious based on the things I’ve seen around me.
- Buy a car
- Build your house/renovation
- Travel for vacation
- Honey moon
- Buying of cloths
- Pleasing others with it
- Cell phone
What do all these things have in common? They take money out of your pocket without bringing it back. When that happens, it’s said to be a bad debt because you’re paying the money back with interest and you have nothing to gain from. When next to decide to borrow from the bank, use it as a source that will bring more money into your pocket.