“I want it and I want it now!” That isn’t your 3 year old talking – it’s the voice in your head telling you how badly you need that new state of the art smartphone with all the bells and whistles (when you actually have a phone that works just fine). The fact that we have such easy access to credit and finance nowadays doesn’t help when it’s coupled with very smart advertising and marketing.  A perfect recipe for disaster!

Before applying for a Personal Loan ask yourself the following questions:

 1. Can I survive without this loan?

There are times when applying for a Personal Loan makes perfect sense. But there are other times when it doesn’t. Only you can answer that question, but answer it truthfully. If you are applying for a Personal Loan, to finance a lavish overseas holiday, but you can’t actually afford to go on a lavish holiday, then you need to make the smart choice.

2. Can I afford to pay this loan back?

Loaning money is the easy bit. Committing to paying the money back, with interest, over a period of time is the hard bit. If you can comfortably afford to pay the instalments back every month then you have nothing to worry about. If you are battling to make ends meet and still need to find money to make sure you honour your loan repayment commitment then the decision should be an easy one – don’t take the loan.

3. Am I getting the best deal possible?

Are you getting the best Personal Loan deal available to you with the best terms? There is no harm in shopping around before you commit. The terms of the repayments and interest charged should be critical in your decision making.

4. Are there any other options available to me?

It’s fair to say that the reason you are applying for a Personal Loan is because you don’t have the money readily available for the purchase or action you are intending to use the loan for. Are there any other options available to you? Could you not tweek your budget, find a few cost cutting measures and save the money?