Loan or No Loan? Borrow only when it makes sense

Not too long ago anyone with a pulse could qualify for a loan. Now millions of people are burdened with debt and have not been able to slow their spending. Here is a simple test with 6 questions to determine if you should borrow.

  1. Are you investing in an asset that will add to your net worth over time like a degree or a business?

  2. Is the loans interest tax deductible?

  3. Is your credit score high enough to qualify for the lowest interest rate?

  4. Will your total debt payments remain less than 30% of your pre-tax income?

  5. Could you afford the payments even if you were out of work for six months?

  6. Can you re pay the loan without a penalty?

    Before you take on any new debt take a good look at your current debt. Have you completed a detailed debt to income worksheet so you can see your total debt on one page? This is a helpful exercise. Few people actually do it because they know they won’t like what they see. This is the only way to “shift your compass” and begin to think about debt in a different way because debt robs us of our freedom.

Start by writing down all your monthly expenses. Everything that goes out in a payment each month. Then write down your total net ( take home ) income. You should be spending less than what you earn. If you spend more than what you earn, it’s only a matter of time before you have issues. We help people re-negotiate their excessive credit card debt once it’s too late. Don’t let this happen to you.

If you spend less than what you earn, you can budget a specific amount each month for fun and for secure savings. Use the excess income to fund your future with the power of compound interest. There are a couple of simple ways to reduce debt and secure your financial future with this plan. This is how you retire comfortably and you must begin sooner than later.

Contact 360 Group for more information or a free confidential consultation that will open your eyes. All the information you need is out there, and has been available for decades. We just present it to you so that you can become empowered by the knowledge.

360 Group is a financial advisory firm dedicated to education about fiscal responsibility and teaching people How To Save Money.

Learn more at and share the FREE E- Books with others!


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