After college, everyone enters into adulthood in the same way: low wages and many expenses to start building life. It is common that this period is marked by more financial juggling than by spare money. Without caution, there is a great risk of already letting go of indebted adult financial life. Here’s how to decide if a loan is right for you right now.
I want a loan to leave my parents’ house.
Leaving your parents’ home may be a necessity after college is over. Your area of work may have more jobs in another city, for example, or you’ve decided it’s time to walk with your own feet.
It is common to share the rent with a friend to dilute costs. If you want to live alone, calculate all the costs to avoid spending more than you can.
Take care: the expenses can grow more than you expected and the personal loan can be a good alternative. Here you can differentiate two cases: if you need the money to rent the property or to furnish the new home, for example.
Fixed expenses, such as rent, should never be financed with loans. Now, extra and punctual expenses, that is, that will not be repeated, can be candidates for a loan. This is especially true if you choose to install the purchase of the furniture, for example, and realize that the interest rate charged by the shopkeeper is higher than that of a personal loan.
I want a loan because I’m unemployed.
Those who are out of work can hardly get a loan at fair rates. Every financial institution requires a proof of income to know their ability to pay. But you can take some actions to deal with this period.
In addition to continuing to seek employment, try cutting back on superfluous expenses. One tip is to download the GuiaBolso application and automatically organize rentals and expenses. It is a way to identify excesses and make your financial reserve money last longer.
Even without a steady job, try to make money working as a freelancer or exploring other skills in temporary jobs.
I want to start my own business.
Borrowing money is a very common first step for anyone who wants to start their own business. It may even be a solution to take out a loan on your behalf when your business is still very much in the beginning. But know that it is best to apply for a legal loan – the cost may be even more interesting for you and your business.