Do you need money for financing your venture? Are you thinking to get the personal loan? We all know that the personal loan is a quick funding option. It involves zero documentation work!

You get the personal loan within minutes. It is a hassle free loan is no need to provide any collateral security. Evaluate your requirements before going for a personal loan. Listed are some situations where you must avoid taking a personal loan in the Philippines.

1. Expenses of your vacation

Don’t plan to go on the vacation on a personal loan. You need to be very cautious when you are applying for a loan. Giving a personal loan application and paying off at a high rate of interest is not a good idea. Save some cash and plan for your dream holidays.

2. Buying consumer goods

Are you passionate about new gadgets and electronic items? Are you planning to buy an expensive newly launched gadget? If yes, it is good. Plan and save your money. Don’t think to take a personal loan just to pursue your passion. There are many other ways where you can make use of the personal loan.

3. In the case of emergency

Whenever we are in some adverse financial situations, we can make rash decisions. Don’t think for borrowing money to get out of your adverse situation. Don’t waste your chance to get the personal loan in the future.

4. For higher education

If you are seeking the personal loan to fund your higher education, then banks offer education loan. A personal loan can be more expensive as compared to the student loan. Education loan comes with many benefits that cannot be compared with personal loan. They offer good repayment options and tax benefits.

5. In the case of financial instability

Are you afraid that you have unstable employment prospects? If yes, then it is not the right time to take the personal loan. The repayment of the loan can be difficult in such a scenario. In the case of skipped payments, it can deteriorate your credit score.

The banks have a high rate of interest on the personal loan. It will not be beneficial for you if you don’t pay your EMI on time. It can hurt you in the long run.

6. Helping a friend

If someone very close to you needs money, then think twice before applying for a personal loan. It is a good gesture to help your friend. But what about the impact of your loan on you and your credit score? Are you thinking of repaying the loan with the same money that your friend will give you? Then, it is not the right decision!

What will you do if he is not able to pay you? Not paying the EMI on time can be a potential disaster! Hence, think twice before helping a friend! Use personal loan judiciously. If you are not able to pay EMI on time then, it can badly affect your credit rating.

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