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Living without Loans – Impossible

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It seems unavoidable nowadays to live without loans as life is frequently unpredictable and provides us with surprises that are not pleasant. The most unpleasant emergencies come when there are no funds and this is when the idea of borrowing appears. In this case it is important to approach the question wisely and responsibly. There are many situations when we have to apply for a loan and here are some of them.

Student Loans

One of the first loans that people have to apply is a student loan. The thing is that high education is very important and if there is anything getting, this is it. However, it is quite expensive to be a student and not all people have enough funds and savings to afford it without any outside assistance. Becoming a student frequently means getting a job for a person apart from taking a student loan.

Surely enough there are students that get grants and do not have to pay tuition and other fees but they are minority and it is a not easy to be selected among many. All the rest have to pay and the amounts are really high. Not all the parents are able to afford such a thing. Still, getting high education opens absolutely different doors and offers much better options for the future to a person. So, taking a loan and becoming a student is worth all the further efforts and repayments.

It makes sense to look for some financial aid apart from a loan as high education in this country is expensive. Still, it is better to take a loan and reach a different stage even if this presupposes working out a pretty tough repayment plan.

Mortgages

The next type of a loan that the majority of people have to opt is a mortgage loan. Own house as well as high education is not something that every family can afford right from the spot. However, it is no less important. In the U.S. there is a system if mortgage and it has been worked out for many years. There is no need to have a great amount of cash to become a homeowner. The majority of people take a mortgage loan and repay it for a long time, very frequently for the rest of their lives. This might seem not the best idea but as reality shoes, it works well for many. The thing that real estate is so expensive that it is simply impossible to buy a house or apartment. For many borrowers a mortgage is the only way to have their own home. If a person has got a family, it is really much better than make monthly payments for the rented apartment, even if it is cheaper. In the case of a mortgage, this is your house you pay for and at some point it will come to your possession completely; while rented apartment will never be your home in the full sense of the word.

Emergencies

There is also another case when a person has to apply to lenders and this is an emergency situation. This frequently refers to individuals and families living from paycheck and having no savings account or any emergency fund to rely on. Thus, many have to apply for the assistance of friends or relatives when fast cash is needed and then there is no such option, they have to apply for a same day payday loan.

This is a short-term option and it is ideal for such cases when cash is needed in the matter of 24 hours for things like car repair or a medical bill. It is urgent and cannot be delayed or ignored. A payday loan can be applied online and without any hassle. Payday lenders do not carry out credit checks and this is a definite benefit for many customers. The bad part is that such emergency lending is expensive. In terms of interest rates the fees are exorbitant and it can easily lead to great debts, if applied frequently.

There are many more different loans and credit card are among them. If looked from a perspective, an average American has got too much loans but in reality it seems that there is no other way to lead a normal satisfying life.

This post was written for Look What Mom Found…and Dad too!

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About Rob

Rob brings a new perspective to the once mommy blog. His insight on technology, parenting and family brings a different spin to the this site, one that is often overlooked in the blogosphere.

Comments

  1. I completely agree with you – the average American HAS to have loans to be able to live life. We need loans to better ourselves (school) to live (home) and unfortunately in this economy many time credit cards are necessary to simply get by. A world without loans would be great but I think the best most of us can do is try to manage our loans and debt and keep them reasonable and from getting out of control. Great article!

  2. Jennifer The Quirky Momma says:

    While I am a huge Dave Ramsey fan, I’m also realistic. We would never have a house if not for our home loan, and we would not have college educations nor would we have a car without loans. We do not have credit cards so the only loans we have are absolutely necessary.

  3. Betty Baez says:

    I’ll be taking out a student loan next year…im already dreading it because we havent taken out a loan ever we have a saving account and we dont have any credit cards.

    • WOW, it sounds like you are in the most perfect financial situation. That is exactly where I would love to be.

  4. So true!! I couldn’t imagine life without some form of a loan especially a mortgage! Could you even imagine??!! It would be great don’t get me wrong…but we need to be realistic. You’re right…we’ll always have loans.

  5. My husband’s student loans have killed us :( I wish that one was impossible to get around

  6. I can understand car & home loans, but student loans are KILLING us. By this time next year, I’d like to be debt-free (with the exception of the car and the house).

    You are right, though, we can’t live without loans. It makes me wonder how people generations before us made it.

    • That is a good question. I am sure they didn’t have nearly as much as we do these days which may have been a good thing.

      • FOR SURE. I mean, when the US was first formed, how soon after did we have the first bank? I’d like to get to a point in my life where I don’t need a loan, but I don’t think that’ll happen.

  7. I kinda think that is why it would be good if our society became a little bit more like the Italian in that children lived with their parents longer. I think we kick ours out way too early. If they stayed home longer, they would have fewer bills and would be able to save up more before establishing their own home.

  8. Yep I have student loans and mortgages…it sucks, BUT they are necessary evils!

    trisha

  9. I would never have been able to afford college or a home without loans. They are a necessary part of our society.

  10. The only loan we currently have is my car loan (we just bought a new to us car last week). :)

  11. Yep we have those. They do suck but something has to motivate you to go to work! :)

  12. It’s true that certain loans are just common-place many times. We try our best to live simply and that helps tremendously. We were soooo happy to have paid off one of our cars last year!

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