If you are going through a financial crises, it might be tempting to get one of the possible forms of financial help as a loan. There are several possibilities you can count on, however, none of them is actually recommended to the people who are already struggling with their financial condition. If you have any chance to manage your finances in a different way, you should do it in the first place.
Getting a microloan
Of course, there are different financial organisations offering microloans. Some of them are transparent and eager to give you money on more favourable conditions whereas there are also companies with absolutely fraudulent policies. Yet, regardless of the exact company you would like to contact for a microloan, you should be aware, this type of a loan is the most dangerous.
Unfortunately, getting a small amount of money as a loan, you have to pay tens times more as an interest to the company from which you have borrowed money. At the same time, this has to be done within a rather short amount of time.
As you can imagine, already being in a difficult financial condition can aggravate it even more if you reach out for such a solution.
Of course, it is not a solution at all. On top of that, organisations offering microloans are the most frequent clients of debt collecting agencies which are certainly rather unpleasant entities to deal with.
As you can see, it is rather easy to get into a serious trouble when you already feel your financial situation is rather poor.
Using a credit card
Your credit card can save you in the situation when you have a stable income and the current month turns out to be rather expensive for you. If something happens and you have to pay more money than usually, assuming this is an absolute necessity, a credit card can really save you.
Yet, if you use your entire income on various expenses and you decide to borrow money from a bank with a credit card to buy something extra for pleasure, you will find out the next month you are incapable to return that money to your bank. This is certainly very dangerous and unnecessary.
Unfortunately, the access to money offered by a credit card is creating an illusion of you being able to afford things you cannot afford. This is not so.
In any case, you should avoid any situations in which you will not manage to return the money within the period of time when it can be done without paying interest rate. Afterwards, you will have to return more and more money.
Borrowing money for unnecessary things
Again, this point is about borrowing money which should be done only in the case of really necessary things. Consumer loans are the same point.
Although consumer loans allow you to get things quickly without prior saving which many people have problems with, it still means you are getting a thing that you actually cannot afford. In addition to it, making a purchase with the help of a consumer loan in practice means you are going to pay for it even more since apart from paying for a thing that is already too expensive for you, you also have to pay the interest rate.
While there might be critical situations when you would prefer such a consumer credit to other unprofitable strategies, for example, when the laptop you are using for work gets destroyed and you cannot afford buying a new one, you certainly should not reach out for this option for the sake of getting some goods for sheer pleasure.