Understanding Loans
Loans are a useful way to acquire a particular thing at a time when you don’t have the funds for it, whether it’s buying your own house and lot, getting a new car, or just being able to pay your tuition fee or a hospital bill. One can resort to loans in times of emergency, when you need the money then and there but your resources are depleted and your bank statements don’t seem to add up. The question is, why do it in the first place?
Easy. To get money to be able to buy or pay off something you need at the moment.
Take for example Andy and his daughter’s tuition fee problem. Andy knows that he has to pay his daughter Jill’s $28,500 tuition every year, but unfortunately, Andy’s father had a sudden heart attack two weeks before the enrollment period for the fall term. Despite his father’s health insurance, continuing medication at least required Andy to allocate some of his earnings for Jill’s grandfather as well as to shoulder a portion of the hospital bill amounting to about $3,000. Just