One issue that generates many dualities in personal finance is whether to apply for a loan when savings are available. This situation is the result of the confrontation of two ideas: first, the idea of acquiring a debt when it is not completely necessary; and second, the fact of spending the savings that were destined for emergencies or contingencies, which option is better? Is having savings contrary to requesting a loan ? Or can you choose to do both with money?
I will give you a series of reasons why you should not hesitate to ask for a loan even when you have savings.
Reserve the savings for unforeseen events or goods that do not generate profit is the most indicated
The savings are all that money that month after month you have been saving to ensure that you support a sum of your own that you can handle in those situations that demand it.
The most advisable thing is that for those expenses that you have well planned in advance, look for a form of financing that does not involve sacrificing the money saved. Well, you will have time to evaluate different credit options and find one that you can pay with comfort. Of course, during the time you replenish the credit it is a good idea not to save or at least not as you usually do, and part of what is supposed to go to saving you invest in amortizing the amount to return, that way you can pay the faster credit and restart your thrifty activity.
Something you should consider secondly is that if you think about credit for a good that is not going to generate direct economic benefit, or that series of items that can fall into the category of luxuries , if it is a good idea to pay with savings , to avoid incurring debts due to them.
A credit is the best option when you want to start a business
If what you want is a loan to invest in a business: start it up or strengthen the one you already have, nothing is more ideal, the profits you provide will exceed the interest rate of the loan. Under this category of starting a business, you can also include all those goods that can directly save you time, money and avoid having other types of expenses, that is, contrary to the previous idea, they will generate profits.
Savings are the last line of defense of your economic stability
The next time you think about making use of your savings, think twice if that is right or a credit could be an option that best suits the need and time.