Have you ever done something dumb for money? Like really, truly dumb? Have you ever just taken out a loan and been like, “why did I do that?”
More than a few geniuses among us have decided to take out online loans for spectacularly idiotic reasons; we can think of at least ten. Trust us; this list is going to be fabulously good. So grab a cup of coffee, sit back and enjoy.
In no particular order:
Funding Your Wedding
First up, we have funding your wedding. According to ConsumerAffairs.com, 45% of couples said they borrowed money to fund their wedding. Okay, look, we all know you want to impress your future in-laws, but taking out a personal loan for that reason is probably one of the dumbest things you could ever do. “Let’s bury ourselves in mountains of debt, honey!”
Yeah, no, that’s the fast track to divorce, my guy. If you can’t afford to fund your wedding or get help from your parents or close family, then elope for goodness sake. The important thing at the end of the day is being married, not the bangin’ reception that only lasts a single night.
Better to save up your own money beforehand, make a budget, and set clear goals. This is what grown adults do. Sit down with your future spouse and figure it out.
If your fiancee simply won’t listen to reason, well, then it’s better not to marry them, am I right? Looks like you just dodged a bullet.
Funding Christmas Presents
No one should go into debt for buying presents for Christmas. I’m sure family and friends would appreciate a handmade macaroni necklace more than knowing you’d just saddled yourself with crushing debt. C’mon man, this is common sense!
Not to mention it’s just not in line with the spirit of the season. Christmas shouldn’t be about gifts anyway; it should be about love and family and memories and being kind to others. It’s about making cookies and singing carols and celebrating the season with those you love.
Okay yeah, it’s about the gifts, but for all that is holy, do not take out a personal loan to buy people presents. Give what you can, and don’t give what you can’t.
Worst gifts ever!
Taking a Vacation
Another dumb reason for taking out a loan is going on vacation with the money. Look, you should plan, save money, make a budget. If you can’t do that, then you can’t afford to go on vacation.
No one should go into debt just to see the sands of some exotic beach. It’s not worth it. You’ll just end up getting sand everywhere as well as encumberingyourself with years of minimum payments.
Both of which will chafe in all the wrong places.
Plastic Surgery
There is no dumber reason for applying for an online loan than plastic surgery. You’re augmenting your body with what isn’t yours by spending money that isn’t yours. Kind of ironic, don’t you think?
Both of these thingsthe surgery and the loan are a mirage. You don’t have the body you want or the money you need, so how about you don’t do it at all? All you’re doing is feeding your ego and self-esteem with wealth you don’t have.
Instead of feeling better about yourself, you will feel worse. Don’t do it. Funding plastic surgery with a loan is probably one of the dumbest things you could ever do.
Instead, how about you love the body God gave you and don’t worry about it anymore? More information on the topic here.
Gambling
Well, maybe this one of the dumbest things on the list instead of plastic surgery. I mean, what’s dumber than taking out a personal loan just to gamble the money away?
Pro tip: don’t gamble. You’re welcome.
Playing the Stock Market
It’s unlikely all your dumb friends are borrowing money for the stock market. But this one is for the dumb old guys out there. If it’s not your own money, don’t invest what you could lose.
Trading stock can be lucrative if done through a proper stockbroker who knows the market, but if someone is dumb enough to take out a loan to invest in stocks, it’s 100% likely they have no stockbroker.
If you absolutely have to buy stocks, use your own money and get a broker.
Paying Medical Bills
Hey, here’s an excellent idea, let’s trade one debt for another! Seriously?! What could be dumber than that?
What problem are you solving, exactly? You still have to pay back the money, and the thing about a loan is they come with skyrocketing interest rates. Better to make payment arrangements with your medical provider than get a loan to pay them off.
For real.
Paying for College
What’s dumber than paying off a college loan with a personal loan? Nope, I can’t think of anything either. There is no benefit to paying off one loan with another (unless you have an extremely high interest rate on the original student loan), just bite the bullet and pay your college loan directly.
Buying a Timeshare
Timeshares always sound like a great idea. You pay for a part, some other poor sap pays another part, and so on. Then, you share! Yipee!
But, you know what’s going to happen? You’ll end up having to take out another loan to go on vacation during your time of the timeshare, making you a double dumbhead. Yes, we went there.
Paying for Everyday Bills
No way! Do people really pay their recurring utility bills with loans? Yup, it’s true. According to one source, 42% of all applicants that borrow money with their agency admit that they need the money to pay utilities like cell phone, power, and cable bills. Wowsers!
If you take out a loan to pay everyday bills such as electricity or internet, you’ll dig yourself into an even deeper hole than the one you’re in right now. Do you think you can pay off more money when you can’t pay what you have today? Please, don’t do this.
Find corners to cut, such as your daily coffee at the coffee hut. Don’t eat out so much. Turn down your heat and wear some socks for goodness sake!
But never, never, never do such a dumb thing as taking out a loan to pay off everyday bills. Do you want to file bankruptcy? Because that’s how you file bankruptcy.
The Bottom Line
Most folks who do dumb things with personal loans are those who aren’t smart with their money in the first place. To avoid all these fantastically dumb things with borrowed money, avoid taking out a loan altogether if you can. Scrimp, save, and make a budget.
Be smart and win at life.
Photo Credits: stock photos