We are often in a state of desperation with severe expenditures. We do not have the backup or savings to address the problem. This has forced us to lend to lenders both banks and non-bank.
Conventional Loans Are Harder
But as we know, lending to a conventional bank institution is not always easy. This is because the bank implements a secure transaction security system that guarantees the customer as well as the bank’s own economic survival. It has not been a long process for funds to be disbursed, so many conventional bank customers are now turning to online lending because almost all of the conventional banks’ non-lending slots are driven by online lending applications.
However, while some advantages of online lending try to cover the disadvantages of conventional lending there are still some disadvantages to online lending. One of the most significant is interest rates that are relatively more expensive than conventional loans.
For those of you who still want to apply for an online loan, this article will cover some of the types of spending you should avoid using online loans. Here are more reviews:
1. DP Buys Vehicles
One of the types of expenses you should avoid paying with online loans is to buy new vehicles either full payment or Down Payment only. Regardless of the type of vehicle you buy for either the four-wheel and two-wheel drive, always avoid using online loans to pay for it even with conventional, high-end conventional loans and long-term liquidity.
This is due to the interest of online loans far beyond conventional loans such as motor vehicle credit (KKB) which are usually provided by multi finance companies and banks. Not to mention that accounting for the value of a vehicle’s assets will always have a sharp decline.
In addition to using a vehicle, We will always spend money on operational expenses such as fuel and maintenance. The expenditure, though small in number sooner or later, will become bigger and more burdensome to your finances.
2. Extra Money Buying Property
The next expense you should avoid by paying it off with an online loan is to allocate it for additional property purchases. As we know, in order to own property we must pay a total of DP. And sometimes because they want to rush to own the property, they even apply for an online loan.
Before you apply for an online loan, you need to understand that online loans generally offer shorter loan tenants. From 1 month, 3 months to 6 months only. If you are applying for a DP online property purchase or DP extension are you ready to issue the DP with a large nominal amount? Plus with a small credit interest.
If you impose a will to propose buying a property with unstable financial conditions you will surely have financial problems later. So think about it again if you want to apply for an online loan for this one.
3. ‘Meat’ Gadget
We often lend online loans for consumptive purposes due to the Fear of Missing Out (FOMO) factor. This is often the case with those who do not have the basic emotional stability they have in Millenials. They do not want to miss the main trend gadget trend of ‘freshness’.
In the end, they took a shortcut through applying for loans online to back up the purchase of gadget that is not cheap because it has just been released on the market. If something like this happens next, of course, your expenditure will be a mess and your spending will increase. While the entry post is still the same.
To buy the gadgets you want it is best to take advantage of the 0% credit card and non-credit card promotions you can find at shopping centers. The key is to not have to rush to have the gadget you want to buy. Keep in mind, gadgets and all electronics are the fastest- growing assets.
4. Close the Hole (Pay the Debt)
As we all know, closing down debt with debt is a bad idea. Paying off debt with a new debt can add a new burden to your finances. In addition, the interest you receive does not cover the possibility that it will be higher than the previous loan.
One of the most dangerous things is getting a loan with a collateral system. If you fail to repay the loan you will lose the loan. If the debt you have is in the form of credit card bills, you can speak to your credit card issuer about the issue. Or if the type of loan you have can be restructured try to negotiate with the lender.
5. Daily expense ( Daily Needs)
The next expense you need to avoid paying with an online loan is a daily expense. This is because it can get you used to online lending for things that are less demanding. Therefore before applying for a loan online, you should consider how important it is.
Also Read: Easy Tips to Lend a Loan that is often overlooked
As much as possible Avoid Consuming Use
Here are some expenses you should consider by paying online loans. Always avoid allocations for expenditures that are consumer-friendly. In addition to not adding value, you tend to lose more because the interest charged online loan is huge. Good luck!