Category: Loan Advice

Should I get a loan to pay for a new mobile phone?

Many people like to upgrade their mobile phone regularly so that they can keep up with the latest fashions and technology. However, some phones can be extremely expensive and it can be really costly doing this. You may find that you do not have the money that you need to afford the phone but you really want it and so you want to borrow the money to be able to get it.

While borrowing can seem like a really easy answer it may not be the wisest choice and so it is worth thinking about the consequences of taking out a loan before you do so. It is easy to focus on how great it will be to have the phone without considering what might happen with regards to the loan.

When you borrow money you will have to pay for the loan. It is easy to forget about this cost and the fact that it will make your purchase more expensive than the ticket price. It is therefore wise to calculate the cost of the loan before you take it out so that you can work out whether you are prepared to pay that much extra for the item that you are buying. It may not seem like that much extra, but think about what you could do with the extra money.

It is also extremely important to consider the repayments on the loan. Whatever type of loan you get, you will have to repay it at some point. This means that you will have to find the money to pay the cost of the phone as well as the cost of the loan. This could be quite tricky and could even mean that you will have to go without other things to afford it. Make sure that you are aware of when the repayments will be due and how much they will be before you sign up to the loan. This should help you to be able to know whether it is something that you will be able to afford. Do make sure that you know what your monthly incomings and outgoings are so that you can calculate whether you will have enough money left to be able to afford these repayments.

Some people find that once they have a debt then they begin to feel stressed. They worry about the cost of the debt and how they will be able to repay it. They think about the fact that they owe someone money and do not like that feeling. They worry about how they will be able to ensure that they have the money to repay, perhaps in case they lose their job, have extra bills to pay or whatever.

It is really wise to consider what might happen should the interest rates go up as well. It is likely that the loan will become more expensive and you will need to find more money for the repayments. You may find that other bills get dearer too and so you may need even more money to be able to pay them all back. It is also wise to be prepared for a situation here your income falls or your outgoings increase. This could happen at any time and it can then be very difficult to manage your finances. Think about what you can do to plan for such an occurrence and whether you would actually be able to cope at all in this situation. If you have to miss a repayment it will mean that you will take longer to repay the loan and will have to pay charges or fees and possibly even higher interest and so the consequences can be extremely expensive.

Getting a loan should never be a quick decision. It is wise to make sure that you think hard about the additional cost, whether you think that they offer good value for money, how you will cope with the repayments and what might happen if you cannot make a repayment. It is worth taking your time to consider the situation and whether you think that the loan will be a sensible idea for you or if it will be better to not get the new phone and avoid the loan.