How to avoid stepping into unnecessary debt
Some of us will combat debts sort of a mortgage or automobile loan at our workplace at some point in our lives.
Before you are doing , it’s vital to know that stepping into debt may be a major responsibility. an excessive amount of debt can easily get you into a financial mess
It is also important to understand that while some things are worth going into debt not, some can easily get you into trouble. Now to the purpose 👇
⭕DON’T EVER TAKE A LOAN you can’t AFFORD: i do know you’re mumbling in your mind that ‘how do i do know what loan I can afford’. Let me answer that, subtract all of your expenses from your income during a month, you’ll easily deduce from what you’ve got left if 100 thousand loan is what you’ll easily payback during a year or 1,000,000 naira.
⭕KNOW YOUR INTEREST: Let me jokingly say this “Make your rate of interest your friend”. But that’s just the proper to try to to to avoid a crisis. Knowing your interest rates and the way it’s being calculated can go an extended way in helping you create better borrowing decisions
⭕READ THE LOAN TERMS CAREFULLY: make sure you read the terms and conditions carefully, understand your rights and obligations clearly before taking over the loan.
⭕DON’T EVER BORROW TO PAY A DEBT: i will be sharing my story with you soon on how I wont to borrow money from a loan app to pay another. This act can only cause financial crisis and depression. Borrowing money to pay another debt may be a sure sign that you simply are getting to have an enormous money problem
⭕KEEP TRACK OF YOUR PROGRESS: Use a worksheet to stay track of your loans and their rate of interest