Understand when it's worth borrowing

Find out what you need to know before borrowing.

November 28, 2017 16:48
3 minute read.
How to get a personal loan?

How to get a personal loan?. (photo credit: PR)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


With proper care, borrowing can be an interesting way out of financial control. In specific situations, it is worth borrowing - as in debt settlement, for example. But how do you know if you need it and if it's worth borrowing? Continue reading and learn to recognize this kind of situation. Let's talk a little about some of them in this post.

Exchange higher interest rates at lower rates

The technical name for the operation is "debt consolidation," and it happens when we take out a loan to settle the other higher interest debts. It is a good alternative to cover the overdraft or avoid credit card credit (when we stop paying the full amount of the invoice) - cases where interest rates are much higher.

When available, short term loans are usually the most advantageous option. Because the discount occurs directly on the payroll, the bank's risk in the operation is reduced, which ensures a lower interest rate. Other types of personal loans also offer very attractive interest rates. Hiring an online loan is an option, since as these companies have smaller structures they have less cost and lower interest rates.

Concentrating all the debts in a single operation can still bring peace of mind, since the excess of charges is avoided. However, you must have good planning, which ensures that the value of the part assumed is within your budget. Otherwise, there is the risk of contracting new debts and the situation is out of control again.

Get discounts by buying at sight

If you need to buy something relevant, such as a refrigerator or furniture, getting a loan can be a good option if there is a discount on the cash purchase. Usually, it is possible to get good rebates by paying cash and it may be worth taking the loan instead of doing installment payments at the store.

In addition, interest rates on commercial loans will certainly be higher than those on the loan, which guarantees an even greater profit margin.

Clear the name on the market

The accumulation of debts can lead people to have the dirty name in credit protection services. In addition to the psychological discomfort, such a condition can make good opportunities unfeasible, such as real estate financing. When you borrow a loan to pay off your debts, you can clear the name quickly.

Start a business of your own

In times of high unemployment, the number of Brazilians interested in starting a business of their own grew. Money does not have to be a barrier! The loan can make your business get off the paper faster and start giving you return in the short term.

Know if it really pays to get loan

Some variables should be carefully considered when deciding on the loan. Especially in renewals, retracted rates can be very different from the original ones, making the deal not so advantageous. For the loan to be worth it, the value of interest should be less than that of the debts to be settled and, of course, be within the contractor's ability to pay. As we have seen, there are situations where it is worth borrowing. Many people insist on staying on the credit card or overdraft because they do not want to admit the need for a loan when they could get good relief from the budget. Remember that these two modes are the most expensive on the market today.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

A building belonging to generic drug producer Teva, Israel's largest company with a market value of
June 25, 2019
Oklahoma judge approves Teva's $85 million opioid settlement


Cookie Settings