Is it worth it to take a loan?

With the little privileges I've seen, people visit the mall for various reasons. A good example in my country Nigeria is the categories of the millennials and generation Z who take many strolls around our celebrated Shoprite malls in their eye-popping fashion gears with their nails and hair-do nicely done. Although what the large number of co-shoppers at the mall may not know is that, some of these ladies have no business or a genuine intention of purchasing an item [initially], they just wanted to be a baby girl and take a stroll out in their newly gotten body con dress... which may be a good sight, but to what end? 

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On a more relatable path, people for varying reasons take a loan. While I won't be here to crown anyone King or make less of the other, our article today identifies the many questions on almost every financially savvy individual’s mind, which is: is it worth it to take a loan? 

My article today would be built on questions like, is it better to save or borrow money, is taking a loan a good idea, is it smart to take out a loan, do loans hurt your credit, and some other interesting and relatable subtopics for your knowledge. 

Just like questions as to why people visit the mall, there are varying answers to this question. While some may appear tenable in the sense of it, others may just be a just considered answer not to appear unserious. People of different demographic, races, cultures, parenting, family ties, life’s happenstance, and other things that make us unique in the sense of it have had reasons to see life from a different angle, hence make decisions which were the best for them. This does not elude the place of naivety or being careless, but we have to pour all these out bare... people have many reasons to seek a loan. 

Bringing myself into this as better proof of example, in Lagos, Nigeria, people live way above their means of income. While I cannot state categorically the percentage ratio, all I can tell as a living proof is that the standard of living is high, and the minimum wages are way low, basic amenities are nothing but another excuse for manifesto by the emerging political capacity to manipulate the masses. Sigh! So, let's face it, when an average graduate, or even a Master's degree holder earns below a USD 200.00, oh! I didn’t mention the sudden spike in rent, crazy! Now tell me, who do you call to meet up with your bills? Not “Ghostbusters” [Ghostbusters is a cartoon I watched growing up, and the lyrics say: Who you gonna call? Ghostbusters!]  

Let’s get this cleared out, many people have no interest in seeking a loan, life simply happened, and they have to move on to eventually beat the system out of it, but in the meantime, if there are no edges like hand-on, and other perks, seeking a loan is the elixir; others who seek out loans just have a bad financial decision. 

Keep in mind that interest might work in your favour when you're saving. Interest might work against you when you borrow money. Compounding interest over time can greatly grow your savings, just as repaying interest on a loan over time can significantly increase your debt. 

If you have a steady income, a good credit score, and good intent of seeking a loan, getting a personal loan is a fantastic idea because you will pay a low-interest rate. A personal loan, on the other hand, would come with a higher interest rate if you have an unsteady job and a low credit score. 

Your credit score is usually determined by how well you serviced your loan at the point of payment. If you defaulted and missed out on payment, it hurts your credit. 

It's all about the motive behind it. People drink water to quench thirst, people also get drowned in water. The intent determines if taking a loan is wise or otherwise. 

From all of these, in summary, seeking a loan is worth it if your intentions are genuine and you can pay it off within the stipulated period. Remember that you have a credit score to protect, and you have your name and social security to protect your credibility.