Loans help finance some of our biggest goals in life. They can provide access to possibilities that we can’t afford upfront—possibilities like going to school, buying a home or starting a business (to name just a few).
A loan is also one of the biggest financial commitments we make in our lifetime. Rushing into a loan without fully understanding how it will affect your budget can create a very stressful situation that can quickly spiral out of control.
The good news is that you can avoid this stress entirely by choosing the loan that’s right for you: a loan you can afford, from a reputable lender, with a payment schedule that makes sense.
Not sure where to start? Check out the infographic below!
Once you’ve done your research and you know your budget inside and out, then arrange to meet with a loan officer. And bring a ton of questions with you! Don’t be shy—ask about any wording you don’t understand. Ask for your lender’s opinion and ask if they’ve worked with someone in a similar situation as yours. To really put your loan in context, ask a variety of “What happens if…?” questions:
- What happens if I miss a payment?
- What happens if I default?
- What happens if I want to pay off the loan faster than expected?
- What happens if I pay weekly instead of monthly?
The most important thing to remember is that taking out and repaying a loan is not intended to be a stressful experience—it’s intended to make large purchases or investments affordable for you. It’s easy to get sucked into horror stories about things like foreclosures and student debt, but a little knowledge and preparation will make your own loan story a lot happier and a lot less dramatic. So study up, focus on your specific needs and ask around—your perfect loan is out there!