7. Student Loan
If you have furthered your education, chances are there has been a big bill to pay. Student loans can help you cover the costs up front from university or college. Unfortunately, they have to be paid back. Many student loans attract compound interest. The longer you have them, the larger the loan will get.
Some student loan repayments are deducted from your paycheck. This means you can’t put off paying them, even if you feel your salary isn’t high enough. In some cases, very low-income graduates might have this loan written off without penalty. You might want to consider funding your education in other ways.
8. Personal Loan
A personal loan can be used to buy a car, an appliance, or for any reason at all. You might sign an agreement for a finance plan when you design a new kitchen. Or maybe you went to the bank for some money to pay for a big event? Whatever the reason, these loans can soon add up. Interest rates vary enormously, and repayments can be taken from your bank account on different days of the month. Unless you’re on top of these things, it can all get pretty messy pretty quickly.
9. Loan Shark
A loan shark is an individual that is not legally allowed to lend you money and charge you for it. It is important that people like this are reported. If you take a loan from someone like this, you might be helping to fund criminal organizations and other illegal activities. This type of person might use violence or blackmail against you to get their money back. They might also change the terms of the original agreement. Steer clear from unauthorized lenders.
10. Your Job
Most employers are willing to provide an advance on your paycheck or lend you money without penalty. Of course, they might ask what it is for, and they might introduce terms for the repayment. You will likely need to sign an agreement that your salary will be docked to repay the loan. Make sure you can afford to lose that portion of your salary! Have you ever borrowed from your workplace?
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