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Loans are a way of life for millions of people. Loans are widely used to obtain cars, houses, businesses, education, franchises, and also for personal use. Loans are what make the world go round. Sadly, life is full of unaffordable expenses. Most of us cannot afford these types of expenses without getting an approval of loans, but loans are the main reason most of us are in debt. Although loans create debt, they can still save us tenfold amount of money. Loans protect equity, assets, and future investments, but mishandling loans can drown us in a misery pool of debt. Loans are meant to serve a greater purpose—to protect our future. However, millions of Americans today are misusing, or even overusing, their loans in erroneous ways—paying high interest, prioritizing other expenses, spending more on personal expenses, contributing to debt, taking out unnecessary loans, and many other wrong reasons. 

There are ways to invest in your future by applying for loans for the right reasons at the right price. Right reasons mean having the will to pay off your debt in full as soon as you possibly can or in a feasible time. You can have the right loan, but it could still be demoralizing to take on a loan that’s hefty in its size and interest. A loan is a massive commitment, and you should consider all financial aspects before taking out any loans. Look at loans in a whole different way. Millions of people owe substantial amounts in debt because of student loans, mortgages, auto loans, and personal loans. In an article reported by USA TODAY, according to the Federal Reserve’s statistics in 2017, the average U.S. household owes $182,421. Additionally, the average debt for students is $50,626, and the average debt for credit cardholders is $16,883. Those numbers are daunting indeed, and that is why you should look at loans as a serious matter if you plan on taking out loans for whatever you are pursuing. It wouldn’t be very wise to take out a loan to splurge on personal luxuries. 

If you don’t need to take out a loan, then don’t! If you can afford the maximum payment on hand, then there’s no need to take out a loan, as you would be paying much more through interest. It wouldn’t make sense to take out a loan to pay for a car you desperately want when you have the money in your account. Your lending institution’s interest trumps your savings account’s interest in the bank, and you would be losing money. But for millions of others who simply cannot afford to pay cash in hand, loans are a way of life. Many rightly invest in their education, career, and house through borrowing from lenders.