Generally, I try not to rely on
loans for whatever it is that I need. This helped me out a lot this past Christmas, since I currently have no debt. I know people who regularly take out
unsecured loans to help them through a personal crisis. I think this demonstrates financial management that is a bit short-sighted, because those
loans typically have interest rates that can be through the roof. On the other hand, sometimes life happens, and if someone has a job that makes it next to impossible to save, such a loan may be necessary. The loans are a good safety net, but anyone who is using them on a regular basis needs to look at building a different sort of safety net. I mean, perhaps your mom would be happy if you moved back in with her, you know?
In an ideal world, I wouldn’t take out a loan at all. However, what am I doing right now? Saving for the down payment on a mortgage. Mortgages are definitely the mother of all loans! However, aside from literally building my own house on an “as I go” basis, I don’t see how it’s avoidable. As someone who doesn’t have a couple of hundred thousand sitting around in my bank account, I’m certainly glad that they’re available.
