We’ve all been there, faced with a pressing need and no cash in sight. The thought comes: Maybe I should just borrow and sort this out. After all, it’s just one loan, right?
But not every problem should be solved with borrowed money. Some things, no matter how urgent or emotional they feel, will only leave you broke and stressed if you take a loan for them.
Here are five things you should never take a loan for, not because they aren’t important, but because debt will only make them harder in the long run.
1. Buying Your First Car
Your first car can be exciting. It represents freedom and personal progress. But buying it on borrowed money can set you up for financial stress. A car is not an asset that grows in value. In fact, it begins to lose value the moment you drive it out of the shop. If you take a loan to buy one, you’re paying more for something that’s reducing in worth daily. Save up, buy what you can afford for now, and upgrade later.
2. Your Wedding Ceremony
Love is beautiful, and weddings are special moments. But love should not start with debt. Borrowing to fund your dream wedding can quickly turn into a financial nightmare. After the guests leave and the pictures fade, you may still be stuck with a loan hanging over your new life. A simple wedding with peace of mind is far better than a loud one with lasting regret.
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3. Renting Your First Apartment
Moving out and renting your own place is a big step, especially when starting life as an adult. But if you need a loan to pay rent, it’s a sign you may not be ready yet. Rent is a recurring cost, not a one-time event. If you struggle with the first payment, what happens the following months? Instead, consider cheaper options, stay with family longer if possible, and build savings to support your independence.
4. Burying a Loved One, Especially a Parent
Losing a loved one is painful, and in many cultures, burials are expensive. However, honouring someone’s memory should not destroy your finances. It’s not disrespectful to bury someone simply. In fact, going into debt for a funeral does not bring them back, and they wouldn’t want you to suffer. Instead of taking a loan, plan with what you have, seek community support, and keep the ceremony meaningful, not extravagant.
5. Paying a Long-Overdue Loan
It may seem like a good idea to take a fresh loan to pay an old one, but it rarely solves the problem. You’re only shifting the debt, not clearing it. This is called “robbing Peter to pay Paul.” Soon, the interest piles up again and the cycle becomes endless. If you’re overwhelmed, speak to your lender and try to renegotiate. Cut down on expenses and find honest ways to repay what you owe gradually.
