Never Let Financial Crisis Bother Anymore

Old people advise never to spend everything that you earn and there would never be any need to borrow. This is definitely a good advice as everyone should have some saving habits but it is quite impractical in this century to avoid borrowing of money. This is because, as every earning individual knows, expenditure can never match a regular income. It is true that one should save to meet probable financial crisis that might occur in future but once an emergency comes, there is no guarantee that the expenditure would be met by the limited saved amount. Often people tend to be in a state of financial distress if and when their regular income get delayed due to unavoidable reasons or when sudden increased expenditure take away their saved money. In such circumstances people need to take laina to meet their financial crisis. It is a good to save for emergencies and should be practiced by all individuals but at certain times even the saved money fails to meet emergencies. Then the time comes for a loan to come to the rescue.  

Risk of Loans

Loans help individuals to fight their financial distress but loans can be risky as well. A sword can help to fight enemies but it can injure the person using it too. Loans are similar to sword as they can harm the individual taking them as well. There are instances where people heavily in debt have committed suicide or have been tried in criminal laws and have been sent to jails. Many young students have got lured by the facilities of the credit systems and most of them could not come out of the web of resulting debts and interests. Taking a loan involves careful study of the terms listed in the documents and understanding each feature of the terms. A person who is confident enough to return the loan amount with interests in time and have fully understood the terms listed should make a move forward to take the loan. Loans are saviors if treated that way but they can be dangerous if one makes them a part of his/her life. The responsibility of handling and using laina is purely dependent upon the borrower. This is the reason why loans are sanctioned to adults, aged nineteen years or more and those who have the ability to take monetary responsibility.

Loans that do not Need Guarantors

Guarantors are usually required as a secondary consent. This is to ensure that if the borrower fails to return the said amount, the individual acting as the guarantor would return the money on behalf of the borrower. Guarantors are needed when large loan amounts are required to be taken. When the principal of a loan is small and the borrower is completely sure of returning the money within the said time, there appears to be no reason for the consent of an additional guarantor. Students taking such small loans hence need not ask their parents to serve as guarantors. Absence of guarantors lessens the amount of documents required in taking a loan and helps the loan to be processed faster. Involvement of guarantors would mean that the bank or the financial company has to work extra on getting to know about the guarantors apart from the borrowers. Who does this extra job especially when time is so expensive? In the absence of a guarantor, the bank or the company just needs to study the details of the borrower and hence transfer the requested loan amount to the bank account online of the borrower as soon as possible.