With the appearance of countless online lenders, the popularity of personal loans has greatly increased. Around the world, thousands of borrowers are applying for personal loans and most of them were approved. Once you got your loan, the next step is to actually use it. You probably know about the best ways of using a personal loan. Now, it’s time to explore the risky methods.
A caveat: the methods that will be discussed are indeed risky, but they can still function as strategies. Just be careful toying around with them.
Invest in Binary Options
If you want to be an online trader yet you don’t want to shell out too much cash, you can try binary trading. Binary options let you buy a small commodity so you can sell it few minutes or hours later. Within a day, you can win hundreds of dollars, especially if you picked the right options. Most of the time though, you’re hitting empty air. Binary options can be likened to gambling – you win some, you lose some. But it’s easy money! Just don’t feel heartbroken if you blew away your personal loan on wrong options.
Repay Another Loan
Loan cycling is the process of taking out a loan to repay a previous debt. This strategy is common in rural areas where people don’t have stable means of income. If you stick to this kind of strategy, you’ll have a hard time getting up from your debts. It’s like you’re trapped in a financial quicksand. Consider this strategy as a last resort, and make a vow that you’ll never use it again.
Now that you have your personal loan, the risk of needless splurging is high. Advertisements will push you to buy stuff that you don’t need. If you splurge too much without thinking about repercussions, your financial dilemma will turn for the worst. Instead of splurging, you should jot down the reasons why you took out a cash loan in the first place. Most borrowers forget about their reasons and they’re fooled into thinking that they have a huge budget to spend on things.
Even if personal loans can be used as solutions to your financial woes, you should not rely on them often. If you cannot repay a personal loan on time, you need to cover penalties and higher interest. This will put you in a compromising financial situation. So, be a responsible borrower!