12 Questions To Ask Yourself Before Taking On A Loan
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Can I really stick to the payment plan?
In many cases, lenders will lend you more than they probably should. The limit on one of my credit cards currently is three times what I make in a month, and they know that – the credit card company analyzed my finances before approving me for the card. I have a dangerous weapon in my hand with that credit card. I could, technically, spend three times what I make because of it! But I don’t. And neither should you. Just because you can qualify for a loan that is X size, that doesn’t mean you should take it. Ask yourself what would happen if one thing in your life changed financially. Like, your rent increases. Or you lose that side gig. If one change like that would make it hard for you to make your loan payment, then that loan is too big. Make sure you have wiggle room in your finances after making that loan payment.
