Loans - Love Them or Hate Them
Filed Under Great Business Articles |
Loans get a bad rap, and I don’t understand why. I love loans, and I love being able to use them to make money. All this whining about how the lenders are to blame for what’s wrong with the economy and how they should have been more responsible in their lending practices. The bottom line is consumers borrowed all that money. Nobody forced them to buy those big houses they couldn’t afford. They got caught up in the marketing hype and got in over their heads. Now they have to pay the price.
Here’s my take: if you can use debt, whether it’s credit cards, personal loans, or a home equity line of credit to make yourself some money in a safe way you should do it. One of the most basic principles of American business is using the bank’s money to get the cash you need to launch a business.
In the coming months, many people will need to refinance their mortgage loans, and I hope they’re able to do that and avoid bankruptcy and foreclosure. But if they can’t, I hope they understand the lesson of not buying more house than you can afford, and not borrowing more than you should.
Loans are going to be your best friend or your worst enemy. You get to decide which.
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