An issue that generates many dualities in personal finances is whether to apply for a loan when you have savings. This situation is the product of the confrontation of two ideas: first, the idea of acquiring a debt when it is not completely necessary; and secondly, the fact of spending the savings that were destined for emergencies or unforeseen events, which option is more convenient? Is having savings contrary to applying for a loan ? Or can you choose to do both with money?
I will give you a series of reasons why you should not hesitate to request a loan even when you have savings.
Reserving savings for contingencies or goods that do not generate profit is the most indicated
Savings constitute all that money that you have been saving month after month to ensure that you are backed by an amount of your own that you can handle in those situations that require it.
The most advisable thing is that for those expenses that you have well planned in advance, look for a form of financing that does not involve sacrificing the money saved. Well, you will have time to evaluate different credit options and find one that you can pay comfortably. Of course, during the time you replace the credit it is a good idea not to save or at least not as you usually do, and part of what is supposed to go to savings you invest in amortizing the amount to be returned, that way you can pay the faster credit and restart your thrifty activity.
Something that you should consider secondly is that if you plan to ask for the credit for a good that will not generate direct economic benefit, or that series of items that can fall into the category of luxuries , if it is a good idea to pay for them with savings , so as not to incur debts due to them.
A loan is the best option when you want to start a business
If what you want is a loan to invest in a business: start it up or strengthen the one you already have, nothing is more ideal, the earnings it provides will exceed the interest rate on the loan. Under this category of starting a business, you can also include all those assets that can directly save you time, money and avoid having other types of expenses, that is, contrary to the previous idea, they do generate profits.
Savings are the last line of defense for your financial stability
The next time you think about making use of your savings, think twice if that is the right thing to do or a loan could be an option that best suits the need and time.