[PAGE-BREAK][/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_custom_heading text=”5. Are you going to take out short-term loans?”][vc_column_text]Short-term loans should be avoided wherever possible. The interest rate on repayments is higher and can cripple you financially. While a short-term loan may be necessary, it should only be considered when there are no other options.[/vc_column_text][vc_single_image image=”12396″ img_size=”large” alignment=”center”][vc_column_text]One of the important factors to think about is what you need the money for. Taking out a short-term loan to buy ‘toys’ such as a fancy entertainment system is a fool’s errand. You should never finance ‘toys.’ The better approach is to save up for what you want and pay cash. Sure, you’ll have to do without the instant gratification. But keep in mind the fact that non-repayment of a short-term loan can ruin your credit.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]