Recently, I have talked a lot about what good credits are in this blog, and on the contrary, are bad loans, and what purposes people should and should not take loans on the contrary. This time, you will look at one of the most complex purposes that credit should not be taken, but people still do, and this is the purpose of Entertainment. However, we all want to have fun and relax after a long and difficult week of work, or enjoy a vacation that is something to remember, and this practice is not bad in itself, but if it is done with credit then it is no longer welcome.
Credit is obtaining things that are necessary for life
The credit should be, as a means of obtaining things that are necessary for life, which people can not afford otherwise, or too much time is needed to accumulate money, so mortgages and car loans are usually not considered reckless and if one has received such money. credit, people usually understand why it was done. But taking credit for entertainment is often confronted with criticism from relatives and friends, because this money will be quickly spent, but after that it will have to be repaid and this repayment process will certainly not be as easy as applying for and receiving this loan. But why credit for entertainment is a bad decision and how will it have a negative impact on your life?
If you take a loan for entertainment, then most likely, after spending your money, you will only keep your memories, because entertainment, no matter how good it would be at the moment, but it is not permanent and you will have a hard time for yourself stating that taking a loan and spending money on such entertainment was prudent. When you buy something permanent by doing it on credit, of course you won’t feel good, but still, with every credit payment and repayment of this loan, you will see this thing, which you then pay instead of the simple memories you are still missing. have to pay money.
Payback will be difficult
Taking credit for entertainment and the next day realizing that now is the time to start paying for this debt, you are unlikely to be excited. And repaying this credit will probably be one of the most difficult things in your life, because by taking loans for some movable or real estate you will be able to pay for this property, but at best you will have only a few photos and, at worst, a long and big headache!
High interest rates
People who take these loans for entertainment often choose quick loans because these loans are the easiest, but short-term loans usually have one big minus and this is the high interest rate on loans, often up to 100% per annum! If you repay the loan on time, this interest rate will not affect you so much, but if you miss the loan payment, you might have to overpay in the long run for this loan.
Short repayment terms
And the last downside is that these so-called quick loans have short repayment terms and so you will have to cut down on your expenses so you can repay this reckless loan. A short term usually means one or two months’ repayment and 100-500 euros will be received within this timeframe, and it often happens that you need to take a loan extension to repay the loan, but this is again a paid service.
I hope that these tips will help you and that you will understand that having fun with credit would not be a work of mind and better use of loans for more serious things like unexpected spending or emergencies.