I Need A Loan Now: Uh, No You Don't!
“I need a loan now“… should say no one ever! We need a loan now, do we? So here we are. You are in a situation where you need to come up with some cash rather urgently. Your back is up against the wall. You have limited (or no funds) in your bank account. You don’t get your next paycheck for another two weeks. You have a serious situation on your hands, that requires you to cough up some dough… It could be the mortgage company or the landlord threatening foreclosure or eviction for nonpayment of your monthly housing payment. It could be an urgent home repair that needs immediate attention that cannot afford to wait. It could be a breakdown of your vehicle, without which you would not be able to commute to work or to school. Whatever the case may be, you don’t have the money. You have no prospects for a lucky windfall of cash anytime soon. Being broke and depressed, you don’t know what to do. You have exhausted all resources. So quite naturally, the thought “I need a loan now” has inevitably crossed your mind.
Lies, Loans, and LibertySo I’m here to tell you that if you are telling yourself “I need a loan now”… uh, no you don’t. That’s right! You read correctly. If you tell me “I need a loan now”, I would unequivocally, absolutely tell you that you do not need a loan now. If you think I’m being absolutely bonkers, and that I have no idea what I’m talking about, and that I don’t know the situation you are going through, and that I haven’t walked the mile that you have, then you are more than welcome to click on the back button on this article, and continue searching up and down the next or previous links in Google for the search term that brought you to this page in the first place.
These aren’t the loans you’re looking forThere are umpteen-million websites that will sell you a loan, will sell you hope on how to get a loan, whether you have spotless credit with nary a blemish, or whether your credit is so deep in the gutter they would need a scuba diver to rescue it! But that is fine. You keep telling yourself “I need a loan now”. Best of luck to you. But I’m here to tell you that you do not need a loan now. Actually, let me qualify that by telling you that you do not even want a loan now. In fact, the last thing you would ever want to do is get a loan.
The “Lowns” of Loans – A Disaster In The MakingGetting a loan is perhaps the single worst thing you could ever do, if you are looking to avert a financial disaster, to pay the bills, to make ends meet, or to struggle to stay afloat. Trust me when I tell you that taking out a loan will only make your situation worse. You may not see it now. But if you read on, I will make it as plain as day for you to understand why you do not need a loan now. In fact, I will even show you how to resolve your current financial conundrum without getting out loan.
Lend Me Your EarOkay. So if you haven’t clicked on the back button yet and you have read this far, then congratulations! You are about to receive some unconventional advice that you might not find on other websites. I’m not here to peddle a loan product. Payday loans, auto loans, secured loans, home equity loans, credit cards, and personal loans are all nothing but financial traps. Read on to learn why.
A Loaf And A LoanWhat’s the difference between a banker and a baker? Both are in business. Both are in the business of creating a product and selling it. And both are in the business of selling. If you don’t buy their product, they don’t make money. In order to entice you to buy their product, they will try to convince you that you need it. Nobody needs bread. While there is the old adage that “man cannot live on bread and water alone”, that is actually not true! Man cannot live a quality life on bread. Bread has actually been proven to be bad for you. It’s not a natural food. It is a processed food. Bread must rise and there must a lot of fluff in order for it to have its appeal. Humans need to eat whole, natural foods. But I digress. This article is not about bread, and I am not a nutritionist.
A Loan By Any Other Name Would Still Benefit Wall StreetThe point I was trying to make is that loans are the same way. In order to make a loan attractive, bankers have to fluff it up, and make it look appealing. They will advertise it with nice, low, affordable monthly payments that seem like they will fit in your budget. They will tout all of the benefits of having a loan and how it will help you achieve your short-term or long-term goals. It is in their best interests to indoctrinate you with the mantra: “I need a loan now”. On the contrary, you need to be telling yourself: “I need a loan now, like a human needs a viral infection”. Loans are like viral infections, nay, they are like cancers! Once they infect you, they will eat away your financial prosperity from within!
Loan Sharks: Why They Want You To Believe “I Need A Loan Now”Have you ever heard of the term “loan shark”? According to “Google Define”, a loan shark is a moneylender who charges extremely high rates of interest, typically under illegal conditions. But what is considered “extremely high”? Well, that’s all subjective. How about if I were to tell you that anything above zero percent is considered “too high”? That’s right! Anything above zero percent is too high. Any loan that charges you interest is a loan you should run far, far, far away from. You need to run to a galaxy far, far away.
Why You Should Never Take Out An Interest-Bearing Loan (Or Any Other Loan For That Matter)When you take out a loan, for let’s say $5,000. The lender gives you nice and easy payments of $125 per month for the next 60 months. This sounds so easy, right? For a mere $125 per month, you get to take care of that $5,000 car repair, or you get to buy that used car, or you get to finance that vacation? $125 hardly seems to make a dent in your budget, right? And in your mind, you could probably rationalize and visualize yourself as being able to effortlessly make more than the minimum payment every month? How about $150 per month? Or better yet, even $200 a month, to help pay down the debt early? You have convinced yourself that you will not only be able to easily afford the minimum monthly payments, but that you will also be able to make more than the minimum monthly payments at some point in the future, when you know that you might be able to earn a raise, get that bonus from work, or be able to get a better paying job someday.
You May Say “I Need A Loan Now” – But There’s A Catch: You Will Pay For It Later (And Then Some)So how does a banker earn money if they are lending it to you and you are merely paying it back? The answer is simple: They are earning interest. They are earning extra money back on top of what you had originally borrowed. They do this in such a way that the average person might be complacent and blissfully unaware of just how much the bank is actually robbing you of your money. Referring back to that $150 per month example above, on a $5,000 loan, to be repaid over 60 months. Have you done the math? If you were to divide up $5,000 into 60 months, that’s only $83 per month. So why on earth are you paying a whopping $150 per month, which is nearly double the monthly payment required in order to repay the loan in 60 months? The answer is simple: Interest. (And interest isn’t exactly that simple. Read on to learn more about interest.)
The Banker’s Interest In Collecting InterestThe banking industry is playing the consumer market for a long con game. They make you feel like you are getting a good deal by offering such generous repayment terms, but when you add up the total amount you would actually be paying over the life of the loan, if you were to only make the minimum monthly payments plus interest, the total amount you would actually paying is staggering. So when you think to yourself “I need a loan now“, banks are able to pretty up the loan to make it look innocuous and harmless, by wrapping it up in a proverbial gift-wrap and bow, to in fact make it look attractive. Using the example above, you would end up paying a mind-boggling grand total of $9,000 over the course of the life of the loan, after 60 months! When you look at it in terms of the monthly outlay, $150 doesn’t seem so bad. But when you think about the total cost over the course of time, you are repaying nearly double the actual amount of the loan. You have betrayed and crippled your future, for the sake of the short-term.
Interest-Bearing Loans Are Bad Medicine For Your Financial WoesFor every problem, there is a cure. For every malady there is a medicine. But not all medicines are necessarily good for you. Many medicines today are marketed with little disclaimers in the fine print. These disclaimers tell you that erstwhile you may be experience temporary relief from the symptoms of whatever ailment you have come down with, you may experience some undesirable side-effects in the process (such as nausea, blurred vision, drowsiness, loss of appetite, or what have you). Well, interest-bearing loans are simply bad medicine for your financial net worth. While they may provide temporary relief from whatever financial predicament you are in, they do come with some nasty side-effects (which fortunately, at the time of this writing, government agencies are required to provide full disclosure of just how much interest you would be paying and for how long): You will be stuck repaying the loan for many years. Long after your life circumstances may have changed, you will still be making payments on that loan. You will be paying back way more money than you had originally borrowed, making it an extremely costly and expensive purchase that you had financed. If you are unable to make the payments at any time, you run the risk of hurting your credit rating. (More on that later; that is a whole separate topic to be discussed in another article). Your budget will be tied up for the long-term, with a reduced cash-flow. So you have to do some serious soul-searching and financial planning before taking out any loan. Next time you find yourself mulling over whether “I need a loan now, you need to sit down and do the math and see how taking out this loan will affect your long-term future, not just your short-term future.
Short-Term Gains For Long-Term LossWhat is the point of bartering away your long-term freedom, handicapping your financial mobility, and creating even more stress for yourself, enjoying short-term benefits by effectively bartering away your long-term freedom? Debt is a form of slavery. There. I said it. Are you wincing at the previous statement? Do you feel it is too harsh? Do you think it is an overzealous mischaracterization of what debt is? Are you saying to yourself “there is no comparison between actual human slavery versus being financially mired in debt”? If you are coming to the defense of debt, then you may need someone to put things into perspective for you. And that, my friend, is the purpose of this blog. We are here to open your eyes, to take the proverbial red pill to see just how far down the rabbit hole goes – to quote Morpheus, from The Matrix. (We could draw an analogy between The Matrix and debt slavery, but that would take us on a whole other tangent. That is a whole other article for another day!) Getting an interest-bearing loan is akin to masochism.
Playing Russian Roulette With A Loaded Loan…Taking out a loan is akin to handling a loaded gun. If you are not careful with it, you could end up with a self-inflicted wound, which would subject you to serious fiscal distress for years, or decades to come. It would have a domino effect on the rest of your financial life. So that is why I am here to tell you that if you are telling yourself “I need a loan now“, then you need to quiet all the noise and all the ruckus that that inner voice is telling you, pulling you toward the trap of instant gratification…. There is no denying the fact that taking out a loan is the easy way out. You may enjoy the relief or the luxury you attain, for a little while. But you will pay for it with an arm and a leg later.
So If I Need A Loan Now, What Should I Be Doing Instead?Why do people take out loans? Because they need money now. So if you need money now, why do you need to borrow it? Why do I need a loan now? Why not earn it instead? Ok… So have I struck a nerve with you, dear reader? Did you just hear me tell you that you need to earn more money now, instead of taking out a loan? The answer is an unresounding, absolutely unequivocal, indisputable YES. Shifting your mindset from a paradigm of borrowing money to one of earning money can be quite harrowing and daunting, and might be a difficult concept to wrap your head around. But when you think about it, it makes complete sense. Let me explain.
How To Earn Money Quickly When I Need A Loan NowWhen it comes to the questions of how you can quickly earn the money you need, instead of simply taking the easy way out and getting out a loan, you need to start by asking yourself the following questions:
- Do I really need this money?
- What would happen if I didn’t borrow it?
- Do I have a plan B that I could settle for?
- Can I make money without spending money?
- Do I have any talents or skills that I can market easily to quickly raise the money that I need?
- Can I do without the item for which I need the money?
- Do I have access to any liquid cash or any money coming my way soon? (This could be an upcoming paycheck or tax return?)
- Realistically, do I need a loan now at the immediate present, or are circumstances such that it can afford to wait / be delayed / deferred to a later point in time?