The Good Loan, The Bad Loan. (The Genesis)
The Good Loan, The Bad Loan.
Many times people ask, when should I take the a loan? Should I break my savings instead of taking a loan? Is this a good loan? Is there a way a loan can be bad?
Many times I’ve explained it to my close friends but definitely, Yes, I can tell you there are good loans and there are bad loans.
Lets talk about errrm, the good loan. A good loan is one you take when you know it would directly affect your day to day activity. It affects your wellbeing, an example would be taking loan for healthcare – definitely if you’re not healthy and fine, there is nothing that can be done – hence it is a good loan.
You also need to understand, that some loans may be good loan to person A and not be good to person B, that bring us to the fact that all not all good loans to person A are good to person B. That points that good loans maybe individualistic. Actually good loans are mostly dependent on individual characteristics peculiar to someone and his/her situation.
Now thinking of bad loans, most bad loan are generic, they are mostly bad to everyone, taking a loan to go on a date, taking a loan to buy cloth, taking a loan to buy car, taking a loan for beauty products (this may be different for MUA) and so all, these listed are all bad loans, lol, not attacking, I have taken plenty bad loans before 😂
Okay, I once said in a meeting taking loan to buy a mobile phone is a bad loan and I once took this same loan and told people. I took a loan to buy my phone which I apparently defended to be a good loan & many objected; now here is the twisted fate – remember the forever argument that car is either an asset or a liability? Same applies here – I am a digital marketer and I use my phone for my buisness, no phone I have used that hasn’t generated more than how much I paid for. Hence taking a loan for an upgrade won’t be bad for me but may be for you.
Now let’s say I take a loan to buy a car, which as of writing I dont have a car and there is no apparent need for it, that would be a very bad loan and lead me in trouble, but if a person intending to get a car for a taxi or delivery service takes a loan and buys a car, that’s not a bad loan for him even when it is a bad loan for me.
Hope you now understand the ideology of bad loans? I think it’s safe to stay away from bad loans because it would affect you when you eventually need to take good loan and also affect you finances. Good loans also may be a loan to get a land, obviously land appreciates and let’s hope you get a good loan deal.
Avoid Bad loans, I repeat, Avoid Bad loans and help your finances grow.
Some other time, I would write about classes of poeple and the kind of loans I may classify as good or as bad.
Adedotun Oyinloye (@thisiadedotun)