1. The end justifies the means
For what reason do we take loans from the bank? The reasons are exactly as much as we create our own needs. Man’s natural desire is to possess material goods, including his own home. For some, it will simply be a nice and comfortable flat. For others, a cottage in the countryside, thanks to which direct contact with nature becomes possible, as well as greater independence than before. The desire to gain social prestige, often superficially exposed, that is, through the prism of external signs of wealth, is not without significance. In the modern world, where many media are constantly encouraging consumption in a broad sense, it is difficult to resist the temptation to spend money on unforeseen goals. However, the problem of borrowers is the lack of savings. Regardless of whether this is the result of inability to collect money or rather low earnings, it seems a good solution to search for a bank offer tailored to your creditworthiness.
2. Purchase and renovation of the flat
Buying a house or flat in a block of flats is a considerable expense, so you can not cover it in spite of many years of saving. However, it is worth considering whether the installment proposed by the bank and the time intended to repay the loan correspond to our capabilities. Using the help of credit counselors, you can choose the cheapest mortgage loan, which is part of the family support programs. In the case of most families, however, the repayment of the loan will, after all, be a great effort requiring many sacrifices. Despite this, there is a tendency to decide more on more expensive cash loans for the purchase of an apartment than on relatively cheaper mortgages.
The operation of the place of residence requires further – in addition considerable – financial outlays. It is no wonder then that the money for the renovation of a flat or house is obtained by taking out a loan. They can be used for painting walls, costly replacement of windows or bathroom renovation. Few families can afford a one-off expense of tens of thousands of zlotys. Thanks to the money borrowed from the bank, it is also easier to furnish the flat. Not all changes in your environment can be scrupulously planned. There are sudden cases, such as devastating failures that need to be removed quickly, often without having the money set aside for this purpose. The legitimacy of taking a cash loan is in such situations not to be undermined. The reason why we take loans from the bank may silence the remorse and reassure them of the rightness of the decision.
The dream of visiting foreign countries – and even continents – is an expression of traveling passion, and sometimes also a desire to impress your friends. The implementation of this objective is often connected with the decision on the loan. The prospect of spending holidays on an exotic beach with a colorful drink in hand is sometimes so strong that borrowed cash seems to be the only way to make this vision real. Families with children also realize the multiplication of the costs of such holidays. You do not have to be hungry for exotic impressions to decide to take a bank loan. It is expensive to provide offspring with a summer camp or winter holidays, which also combines the necessity of equipping your child with the essentials in these conditions. Many people can not afford to pay for a family holiday, so taking out a loan and paying it back for the next vacation may seem like a reasonable solution.
4. Family celebrations
Baptisms, communions, weddings and funerals for many centuries were the best opportunity to display the place of the family in society. However, such events consume a lot of money, so more and more people are choosing a loan with which to finance the costs of, for example, a sumptuous wedding. The comforting of the debt payment perspective is usually the expectation of gifts in the form of cash from guests. A loan on good terms can help meet the costly expectations of family and friends, while not being a major burden on the budget of a new family.
Banks offer loans on a seasonal basis on more favorable terms than usual. The occasion for this is Christmas as being an expensive undertaking as well as weddings and communions. The loan taken in this case is used to organize the family’s festive life and gifts. Many families prefer Christmas pomp in accordance with the old principle of “set off and put up,” and then the cost of Christmas and Easter decorations and sophisticated and numerous dishes may exceed the possibility of a modest, home budget. Small-scale short-term loans may in such cases be a salvation from the trouble.
5. Buying and repairing a car
One of the most common reasons for taking cash loans is the need to get money to buy a car. Customers have car loans at their disposal, but many of them are willing to take ordinary cash loans. It is a significant help in the situation when we decide not to buy the car, we do not have the whole amount expected by the seller. Life without a car seems impossible nowadays. The operation of the car, however, has its price, which includes not only the cost of fuel, but also the need to make the necessary repairs. The prospect of the latter is the closer it is, the older the car you buy is deprived of the warranty. Auto is a working tool for most people living in places without a dense bus communication network. Defects and damage to the car must therefore be repaired on a regular basis, and if we lack savings saved for this purpose, a bank loan may be helpful.
6. Health needs
Long queues characteristic in Poland for public clinics not only discourage the use of their services, but also make it difficult to take quick treatment. Many people opt for private treatment, which, however, requires a large amount of savings. Expensive, private diagnostics, often expensive medicines and the necessity to pay for the private physician’s care force patients to look for help in the banks’ offer. For borrowed money you can, among other things, pay for costly dental treatments, but in the case of sudden and serious loss of health the decision to indebt yourself in the bank usually falls even faster.
7. Electronic equipment
For many people, electronic equipment is not only a toy, but also a work tool. After the warranty period you have to pay for its repairs, and it turns out that it is often more cost-effective to buy new equipment. This can be done using the installment system that dominates computers and telephones. They are not devices that can work efficiently for many years, so the need to replace them is a considerable financial cost. Purchase in installments is often a decision in these circumstances.
It is estimated that around 22 per cent of borrowers opt for a bank loan to pay off other liabilities. Such a treatment may, however, contribute to serious financial problems because it is able to launch the phenomenon of so-called credit looping. The accumulation of debts is not good for anyone, although there are cases of truly dramatic situations forcing borrowers to take such risks.
9. Non-standard needs
The payment of important, and often key, financial liabilities by means of bank loans is not everything. There are cases of borrowing for much less necessary reasons. Therefore, there are clients in bank branches who want to cover the costs of treatments at the aesthetic medicine doctor or purchase of a purebred animal. Some of them plan to finance a divorce by means of a loan, and even acquire a dream creation from a well-known fashion designer. It is easier to understand the debt in order to set up a retirement account or to keep such money on a bank deposit, although these reasons may raise doubts.