Jefanie Genilla
Getting a new loan is a major financial decision, especially if you already have existing bills to cover each month. But if you really need one, it helps to reconsider your options first, as well as how best to manage your finances each month. Here’s how to evaluate yourself if you’re ready for another loan.
Have you come to a point in your life when you seem to be struggling to make ends meet always? Do you think it’s time to take another loan again? If you do, better think twice before you go to the nearest lender and take the first offer they provide. Ask yourself these six crucial questions first – these will help you evaluate your current financial status and see if it’s wise to take a loan:
Is a new loan really the best solution?
If you’re having problems with your utility bills, school fees and daily consumption month after month, your situation is probably just a matter of budgeting. Take time to study your cash flow as objectively as possible, listing down all your sources of income and expenses. Don’t hesitate to cut down on your unnecessary expenses to free up some money to be spent on more important matters. However, if you are in need of money to keep your business operational, getting a loan may be the best way to go. It’s wiser to borrow cash than spend all your savings and emergency funds to sustain your business.
What type of new loan should I get?
A business or SME loan is perfect for those planning to open a company while a personal loan is best use to address immediate financial constraints. Borrowers also have the option to opt for a collateral (secured) or non-collateral (unsecured) loan.
What’s the current situation of my cash flow?
Lenders will approve your loan if you’ve proven yourself capable of paying your monthly dues. So before you start searching for a lender, it helps to list all your income streams. Create a budget covering your recurring monthly expenses and see how much cash you have left to allocate for the additional loan you’re planning to get.
How much loan should I get?
If you think you’re monthly income would still sufficient even with the addition of another loan, you can start to decide how much you can take out. The best way to do this is to use an online loan calculator that will calculate the total cost of your credit, including the accrued interest rate over time.
Where should I borrow?
Loan sharks are everywhere and they take advantage of borrowers by offering money at high interest rate. Be wise. Make sure to partner with Loansolutions.ph to get access to the best loan offers from banks and private lenders. Loansolutions.ph is the Philippines’ largest partnership of financing solution providers. The company is committed to provide Filipinos with a wide range of financing options, making sure they get access to the best rate. If you haven’t found a lender yet, you might like to use the company’s 3-Step Online Application process.
