Money is never free, quite logically because it is the medium by which many things are valued. One has to earn the money in some way, and then buy what one needs or wants with it. Sometimes there are things that you need or want but do not have the money for at the moment. You know that saving up is the best way to get that money, but you also cannot wait that long for your savings to build up. Thus you ask for some money from someone, and thus accrue a debt to be paid at some future time. This has been a practice since the beginning of civilization, and continues to be a fact today. Debt is inevitable, especially when financing some purchase to satisfy conditions. Installment loans play on the strengths of financing, by providing access to money from the borrower and from which the lender can profit, albeit the returns are periodic.
An Equal Exchange
The idea of a loan is built on the concept of equal exchange. Though in the end a debt from a loan will be repaid with more than it was originally worth, the borrower gains the advantage of time. One could think of the interest as a price to pay for not waiting to save up the required amount of money. This is part of the equal exchange one deals with in loans and debts. Installment loans are as such, as they provide the money now, which will be paid back part by part over time, with attached interest for services rendered. There are many types of these loans, some are short-term, to be paid in a few weeks, while others can take a few decades to pay off. Having access to a significant amount of money as you need it is incredibly useful, as it could save your life or improve it when used correctly.
Install With An Installment Loan
As an example, imagine you are a freelancer working from your home. You use your computer a lot, and it has served you well for a few years. Today however, it is riddled with errors and is no longer capable of running the latest programs. Realizing it is time to upgrade, you consider your finances. Work has been slow lately, and you haven't saved up enough for a new computer system. The need to upgrade is unavoidable, and cannot be postponed until you get some more money. You apply for an installment loan at your local bank, and use the money to buy a new, cutting-edge computer. After a short period of setting up and installing your programs, you get to work right away. Without the crashes and errors of your previous computer, your work proceeds much faster and you take on more jobs. With the money you make, you pay off your monthly installments and make more than enough to support yourself. With the right investments, a little luck and a lot of hard work, any loan has the potential to improve life. Keeping debt in check is key though, since debt can equally cripple as enable. The first priority with any loan or debt is to direct money to paying it off, since being delinquent in payments has exponential consequences.
Martin_Willson
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