Is it worth borrowing?

Borrowing is not always straightforward. There is a lot of loans available online, for example, and getting and applying for a loan has become very easy over the last ten years. You can apply for a loan online in minutes and even a bank can now easily apply for a loan online.

However, you should only apply for a loan when there is a real need for it and when the loan can be repaid easily. Money is often borrowed for reasons that may not be economically wise.

In this article, we look at whether it is worthwhile to take out a loan and in what situation it is the wisest of all.

When is a loan worth taking?

When is a loan worth taking?

Before that time, only a bank could apply for a loan against collateral or guarantors. The loan was usually taken only for major purchases, such as home purchase. However, thanks to the internet and instant tips, getting a loan has become easier and easier.

Indeed, since the arrival of instant noodles in Finland in 2005, people have applied for small loans and private loans very often and for small purchases. Instant snippets were quickly searched for on the phone, for example when outside or when sales started. However, it was rarely taken into account how high the interest rate was in the quick lures. The hundreds of levers easily rose several hundred down.

This caused problems for the citizens’ economy. Many stayed in the swing of the lever as they swung one by one to pay off their previous loans. Fortunately, the government intervened and set an interest rate cap in 2013, which completely eliminated small loans, or at least controlled their astronomical interest rates.

Instead, however, more and more consumer and flexible loans entered the market. This facilitated the issue of interest rates, but not the reduction in loans. On the contrary: the loan amounts of the people went up and up.

Nowadays, in an acute situation, it is easy to get a loan quickly online in minutes. However, the loan will follow its worst for years.

You should only take out a loan when it is a purchase for which it is impossible to save in a reasonable amount of time and which is absolutely necessary. For example, a mortgage can be a good idea. Similarly, a loan can be applied for, for example, for renovation or for buying a car.

However, you should not apply for a loan for small purchases, such as a coat seen at a discount sale. In any case, it is not worth taking a loan for a chronic need of money – this only causes a debt spiral that is impossible to get out of.

Whatever the subject of the loan, the most important thing about borrowing is remembering that the loan has to be repaid with interest. Therefore, before applying for a loan, you should ensure that you have the opportunity to repay the loan on a monthly basis without causing you stress or financial crisis.

What kind of loan is worth taking?

What kind of loan is worth taking?

These days, many are resorting to online loans. Loans available online do not require collateral or guarantors. It is easy and quick to apply for a loan. For example, you can apply for a loan online on one page that competes for loans for you. This way you can easily compare and choose the right loan for you.

The good thing about online loans is that you can get a loan quickly without any collateral or guarantees. You also don’t have to go to the bank to sign papers, because the process is fast. The downside to loans available online, however, is that they are usually very expensive. The interest rate may be quite high. This is something that should be given great attention before a loan is approved.

Loans from the bank are always safe. When applying for a loan from a bank, you will usually have to obtain collateral or at least a guarantor, especially if the amount is high. At worst, applying for a loan through a bank can take a week or two. In addition, you will usually need to visit the bank to personally sign the loan agreement.

However, the good thing about bank loans is that interest rates are much lower. In addition, it is often possible to obtain much larger loans from a bank than when applying online. In other words, if you want to apply for a mortgage, for example, the best option might be a bank loan rather than an online loan.

How should the loan be repaid?

How should the loan be repaid?

The loan must always be repaid monthly. The loan agreement defines the amount that you will have to repay each month and the date on which the loan repayment is due.

The easiest way to pay your loan back to the bank is to set up an automatic loan repayment on your payday. This will ensure that you do not have to think about paying off the loan at all. This way, the loan repayment will leave your account as soon as possible, and it will be taken care of below. The rest of the money can then be used to pay other bills and have fun.

The down payment should always be an amount that does not ruin your finances. You should be able to pay off your loan easily without causing you stress. Remember this when applying for a loan. Ask your bank to arrange a payment period that guarantees the most comfortable monthly payment.

Remember, however, that the longer you pay off your loan, the more you pay interest and costs. So the faster you repay the loan, the cheaper it will be for you. In the best case scenario, you will automatically pay off your loan on your payday, plus a little extra when you can afford it.

You can always pay off the loan faster than what is specified in the contract. So if you want to pay off a little extra in certain months, it’s usually good for the bank.

If you have tight months ahead, you can usually ask your bank for repayment gratuities. However, months of grace are often to be defined in the contract. During the term of the contract, one or two months of grace period is usually granted, if desired. During the grace period you only pay interest and expenses. Consideration-free months are worth considering, for example, for Christmas and for months when holidays are planned.

What if the loan cannot be repaid?

What if the loan cannot be repaid?

The loan must always be paid off one way or another. If you are facing bad months financially, the first step is to call the lender and tell them about the situation. Usually, they will be happy to arrange a loan so that you can pay off a smaller amount over a period of time. This can already help you greatly.

In the worst case, the loan can go to your guarantor for payment, collection or collection. Banks always want their claims, one way or another. For this reason, it is very important to remember to ensure that the loan can be repaid as quickly and easily as possible.


Taking a loan can be very useful in certain situations. For example, few are able to buy a home without borrowing. From time to time, for example, the need for renovation may be surprising, or other surprising, high and acute costs may become topical. These are the moments when you may want to take out a loan.

However, when applying for a loan, you should carefully consider and calculate that there is a guarantee in your own household. So it is a good idea to avoid taking out a loan for simple reasons. Always remember to compare your loans properly before deciding which loan to take. Spend time comparing interest rates and charges as well as payout time and monthly payment amount. Also consider whether you should apply for a loan from a bank or online.

By working closely with the loans and the application process, you will learn more and make a wise and informed decision. Always think about whether you can survive without a loan. The less debt you owe, the more stress-free your financial life will be!