Most people have heard of installment loans Canada, and at one point or another, many also begin to wonder if they might benefit from getting one for themselves. There are 5 primary things that indicate that a person will be able to have a positive experience when taking out an installment loan. If you don’t meet all of these 5 criteria, then maybe these loans aren’t a good idea for you right now. If you do, however, it might be time to look into them a little more seriously. Read the list below to find out where you stand right now.
1. You Have a Stable Income
The most important thing that you need to make sure you have before you take on a loan is a predictable income. If you don’t have money coming in, you won’t be able to reliably pay back a loan. Not only would it not be a good idea on your part considering the high likelihood of struggle, but most lenders won’t even think about approving you for anything either.
Take note – while this income doesn’t necessarily have to be from a job, you’ll be more likely to be accepted for more loans if it is. People who derive their income from social assistance payments, disability payments or even self-employment work usually have a harder time getting loans than those who are self-employed. If you want to fund a loan with this type of income, you’ll have a slightly harder search ahead of you.
2. You Have Some Great Need For Money
There is no reason to go looking for a loan if you don’t have anything specific to spend the extra money on – otherwise you’re just paying extra to feel rich for a time. You should have more than a vague intention to purchase something, too. You should know exactly what you want to buy and how much that item or service will cost. If you don’t, you won’t know if you’ve found a loan of the appropriate size when you do settle on a candidate. Essentially, you need to have a specific purpose for your money before you go looking for it.
3. You Understand What Debt Is
You’d be surprised at how many people think they know what debt is but don’t actually have it right. When you borrow money, you’re agreeing that in exchange for the ability to access some money that you do not have right away, you will later pay that money back with interest added onto it. This means that whatever you buy with a loan will actually cost you more in real terms than it would if you had just purchased with money you already had. Many people fail to factor in that cost when they plan to borrow to buy something, but it is absolutely essential to do so. You need to have a realistic picture of what it will mean for your life if you choose to make this financial move because that is the only way you will be able to make an informed choice.
4. You Know What the Consequences Will Be If You Don’t Repay
Even if you know what is expected of you when you borrow and have the means to live up to those expectations, that doesn’t necessarily mean that you understand why it’s important not to let those obligations slide. If you do, things may begin to happen that you will not enjoy. Missing a payment on a loan for which you are responsible will cause the overall balance you owe to grow; not only will you not be paying down the principal of the loan, but there will be interest added to that principal that will leave you with a greater payment to make the next month. Do this too many times and your debt will balloon to far greater heights than where it began and could easily grow to be unmanageable for you. You need to know all of these things in order to be properly prepared to borrow.
5. You Are Willing To Prioritize Your Debt
You don’t want to be part of what some are calling Canada’s growing debt problem, but that’s exactly what you’ll be if you aren’t careful to take your debt seriously. That’s why paying back your debt has to be one of your top priorities until you no longer owe anything. Doing this is going to mean making some sacrifices in your disposable income spending that you will probably not enjoy giving up. This is necessary in order to ensure that you can successfully finish repaying your loan, but it will probably be tempting for you to abandon that goal entirely and just keep spending as you always have.
You need to be willing to shun that impulse and stick to the plan regardless of what you feel like doing. If you’re not willing to put your debt repayment above nearly everything else (it’s okay to still put food, shelter and medical care above it, but that’s it), you probably are not ready to take out installment loans Canada just yet. Work to get yourself more prepared to take on this burden before you actually have to deal with it and you will have a much better chance of having a positive experience with this whole undertaking.
Good To Go? Time To Get Your Installment Loans Canada
After making sure that you check off all these boxes, you can start to look for installment loans Canada to apply for. Why not do it with Bonsai Finance’s help? We can put you in touch with many lenders offering these kinds of loans through one quick online search. Applying for them can be done online in just a handful of minutes as well, so you’ll never have to leave your computer to do this. You’ve already done the hard work of getting yourself ready to borrow – now let us do the rest.