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Is Getting a Loan The Best Solution?

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When a person gets to a certain age, they ask more from their life. When we’re kids, the requirements are very affordable compared to later times. Also, being underage means we probably have a legal guardian or a parent that takes care of our needs and wishes. When we grow up and become adults ourselves, getting our needs and wishes become true take a lot more effort.

The main problem for this is money. When we become adults we have needs that demand high amounts of money that we simply don’t have. This is a time when we think of getting a loan. Banks always offer loans for people who have steady jobs and are able to return the loan in time.

Of course, the bank’s main purpose is to make a profit, so don’t expect that someone will help you and give you money that you don’t have to repay with a significantly different sum at the end of the plan. See this article to learn more about bank profits.

A smart person will think to itself if there’s another solution. Of course, there’s always another solution, but not every solution is the perfect one.

What other options do I have?

One option is selling some of your belonging in order to get the money. Let’s say that you need $100.000 and you have two apartments, it’s wise to sell one of them and collect such a big sum of money. Of course, every finance worker that you ask will tell you that selling property is madness. Everyone is trying to get more real estate because apartments, houses, and building never lose their price and can only go up.

Maybe in this situation, you can think about putting a mortgage on the apartment and still get a loan from the bank. As a compromising solution, you can put the same apartment for rent and the money you get from the rent can actually be the money you’ll pay back to the banks. This way you end up with getting a lump sum while at the same time you lose no money at all because the apartment pays back the loan for you.

What if I don’t have apartments to spare?

Many people have this problem, logically. Not all of us were raised in a royal family or at least had the luck to have more than one apartment. If you have no such luxury to use one of the apartments to get a loan or simply sell it to get a lump sum, then you need a different solution.

This solution is called getting a loan no matter the bad sides. As we already discussed previously, banks offer loans with enormous interest rates that make you repay much more than you actually borrow. For example, in Norway, a loan under 20% is a fair loan, and under 10% is an excellent opportunity. See more about it here: forbrukslan.blog:lån på minuttet

What is most important in getting a loan?

Interest rates and time of repaying the loan – that is the most important part that you must pay attention to before signing the documents. Different reasons for asking a loan will provide you different rates. Asking for a free loan without saying why you need it will get you the worst rates. Borrowing money for buying real estate will probably provide you with some lowest possible interest rates. No matter the reason you need the money for, it’s always important to look for the lowest rates.

All banks differ from each other with the interest rates for giving the same kinds of loans. It’s important to look through all of them and find the best options for you. And the best options are called the lowest rates on the shortest time for repaying the money.

All banks also have loan calculators on their webpage so you can see how much money you can borrow and how much you’ll have to return at the end of the agreement. Make a simple comparison between banks and different kinds of loans and you’ll see that the difference is often in tens of thousands of dollars.

For example, if a bank offers a loan of $100.000 that you must get back in a period of 20 years, you’ll see that at the end of the agreement you’ll actually return as much as $150.000. Just a 0,5% in the interest rate can mean $140.000 and this is not a sum of money that anyone will say it’s something to throw away. Here’s a loan calculator in case you like to know more: https://www.calculator.net/loan-calculator.html

Conclusion

Bank loans are never the best solution but they are always the only logical solution there is. No one else is ready to give us sums of tens or hundreds of thousands of dollars. In the end, the conclusion is that bank loans may be the best and the only solution in getting a huge amount of money.