Loan is a great tool that we can use to improve financial condition. Through loan we will be able to come up with a sufficient and adequate amount to start a business, pay off obligations or to something that we long to do and could not do due to financial restrictions. We get a loan since we get the whole amount in advance and we pay it off slowly and at very low amount. But most often getting a loan has its disastrous results and even life ending consequences. Like credit cards there is no hesitance or double thinking on our part to spend we do not actually see the money or cash being transferred to the hand of another but we just only see a plastic card being run into a machine and there it is we already get that beautiful jewelry that we have been craving for. We tend to spend off that loaned amount for the purpose that it was not intended for. We spend to things that will not yield a return and often ends up breaking our liquidity and these loans will start haunting us then when due dates will start falling. So next time that you get a loan, be ready to spend it wisely.

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