Mon. Apr 6th, 2020

Month: February 2017

How to Avoid Over-Dependence on Personal Loans?

While many borrowers are thankful for the easy application process of personal loans, some have fallen in the trap of over-dependence. These borrowers are caught in the disastrous cycle of constant loan application from loan companies, hoping to fill their lives with ‘financial band-aids.’ A debt cycle is a stressful ordeal and it can take a toll in health and sanity.

Are you fond of using personal loans or bpi credit cards as your ‘personal crutches?’ Do you want to get out of the habit of using one fast cash loan to pay off another? In this case, you should take note of the following strategies:


Create a Long-term Financial Plan 

A long-term financial plan can help you for the coming years. It will not just solve your debt problem but can also help you implement the financial strategies needed. To create a long-term financial plan, you have to be honest with yourself. Better yet: discuss it with your family. Point out all of your income sources and expenses. Afterwards, determine how you can get out of debts.


Limit Your Luxuries 

Overspending is one of the main reasons why borrowers are falling heavily on the debt cycle. They tend to buy stuff they don’t need such as gadgets, fancy appliances, unhealthy food, subscriptions, and jewelry. Instead of using cash loans for emergency purposes, the borrowers splurge like there’s no tomorrow.

To snap out of salary loan dependence, you should limit your luxuries. Figure out the things you don’t need and remove them from your budget. Focus on the things that really matter.


Apply for Loans Only Twice a Year

You cannot avoid loans unless you’re really swimming in cash. Whenever something happens, a quick cash loan can get you out of your dilemma. Since you’ll need personal loans one way or another, you should just put a limitation. One or two loan applications per year will do. This can be a real challenge especially if you’re used to having multiple loan transactions per year. But if you can adhere to this limitation, the positive financial change is undeniable.


Have Multiple Sources of Income 

If you are employed but pinned down by multiple loan obligations, things can be hard for you. Aside from making strict budget cuts, you should also consider getting new income sources. Since there are hundreds of online platforms that you can rely on, there will be no shortage of projects. Just be patient because competition can be high.


Loan over-dependence cannot be resolved overnight. It’ll take time to remove this habit framework from your system. But you mustn’t give up! Discipline yourself and understand the real purpose of personal loans: emergency solutions.

4 Ways Personal Loans Are Changing Urban Lifestyle

The urban lifestyle is changing rapidly each year. People from all walks of life are adapting to modernism without losing their cultural roots and beliefs. There are many things that genuinely affect the collective urban lifestyle. One of these things is a personal loan. In its simple nature, a personal loan is a debt instrument that can be used to purchase things. Over the years, financial experts have studied the main ways personal loans affect urban lifestyle.

Here are the interesting points:

Increased Spending Power

Whenever a consumer gets additional resources (i.e. cash), his spending power naturally increases. Nowadays, you’ll see many urban borrowers who apply for personal loans so they can purchase the things they want. While this is not advisable in the financial viewpoint, nothing can be done about it. The natural flow of economics will occur, and personal loans are just stimulating the market.

More Opportunities for Product Creation

Entrepreneurship has taken a different form in the past 5 years. Technology made many things possible and paved the way for new, interesting business ideas. As personal loans became more available to entrepreneurs, new urban products were created. Around the world, you can discover these products along with their creators. It’s also important to know that small businesses are currently being funded by quick-cash personal loans. After all, the process is easier and shouldn’t take longer than a day.

Personal Loans as Rental Payments

Lots of urban dwellers are also using personal loans or utang as payments for their rent. There’s nothing wrong with this; in fact, the real estate economy is directly boosted through that method. For 2017 and beyond, it’s expected that the numbers will still grow and many residents will continue relying on personal loans. An advice: if you’re renting an apartment, do not use loans for continuous payment. Sooner or later, you’d end up applying for unnecessary loans. Rather, you should work on managing your finances wisely.

Personal Loans Improve Lender-Borrower Relations

There are hundreds of loans available today. The major loans of the past can be divided into subcategories. Among all of these loans, personal loans are ‘quick favorites.’ These loans improve lender-borrower relations by a large scale, thus positively changing the global lending scene. To meet the growing demands of clients, licensed money lenders must work hard in lowering their rates or improving their loan offers. In turn, borrowers will share their unbiased reviews.

Do you agree with the points mentioned above? Perhaps you should try out applying for a personal loan within your area. Just remember to pick the lender that’ll give you fair rates.