Are loans good or bad?
Allow me to drift back a little… in 2001, DH came back with great excitement and told me that he had just committed himself to a restaurant business. At that time, he was still struggling with a poor franchise business that he started during the Asian crisis in 1997.
I shared his excitement until I heard that he was taking up an unsecured loan as I knew that these loans come with high interest rates. I was not about to get us into any financial debts so that sparked a sea of uncertainty and fears. I made it clear that I would be supportive of the business as long as he doesn’t land on bad credit loan.
It is common for business people to consolidate debt so that they need not worry about different payment due dates and interest variables. Personally, I observe that some banks tend to over-sell their loan options without checking on the financial history of the customer. I am not against any personal loans for that matter but there should always be a good and valid reason before committing yourself to a loan.
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