Private Personal Loan - Is it Really Worth?
There are lots of personal lenders in the market from which you can take a private personal loan. However, you should keep in mind that these private lenders will ask for high interest rates than the traditional banks and financial institutes.
This is because most of the time it is believed that people who are not qualified for the traditional loans go with the private lenders. And that's why they charge higher interest rates than the traditional interest rates.
Now, the question is that is it really worth to take a private personal loan? Well, it really depends on which things you are going to spend this money. Basically there are 2 kind of debts. One is a good debt and the other is a bad debt. Good debt is one when you borrow money to buy assets and a bad debt is one when you borrow money to acquire liabilities (Depreciating items).
The Good Debt is a good because at the end of repaying the debt, the asset develops which appreciate year after year. While a bad debt is bad because even after repaying all of that debt, the thing that you had acquired will be worthless or depreciated severly.
Thus, it really depends on the borrower that where he spends this money. Most of the people take a bad debt. Most of the time it is a debt to fuel their high status life style. While very few people in the world take a good debt and become richer than ever after repaying their debt.
Thus, before taking a Private Personal Loan, ask yourself that weather Is it a Good Debt or a Bad Debt? Remember, a Good Debt will make you more richer and a Bad Debt will make you more poorer.