Is there ever an appropriate time to get a loan?

I’m always going on about how people should never use credit cards, should never get a loan and never succumb to the standard spending and financial patterns that the world at large tells us is ok.

Loans and credit in general should NEVER be used for enjoyment, or in cases when other options are available but of course my hard-lined approach is just opinion and I am not necessarily 100% right. Still, I stick with my thoughts and that’s why I have pledged to never take credit again.

However there may be times where picking up a personal loan is actually a sensible thing to do and I think even as an anti-credit guy it’s important to acknowledge that.

When is it ok?

The top priority should always be to pay down all debt as fast as possible. There is a lt that can be done to work towards this and initiatives such as the Debt Movement are a great way to get involved in a positive community to help you do that.

If you are in debt from various sources and your interest rates are all over the place then this is a time where getting it all paid off in one sht with a  personal loan at a stable interest rate could be a well planned justified move. Say you have a credit card at 12%, an old loan at 7.2% and maybe an overdraft kicking around at 15% you could put all those together potentially in a 6% loan with stable monthly repayments. Of course this is just theory and you HAVE to do your research.

Sensible use of tools available to you is important but of course for many of us that are in or have experienced debt it was insensible use that caused us to get into that position!

Do you think there are any other times when using loans is ok?

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