| Category | Examples | Why You Should Not Take This Loan |
|---|---|---|
| Housing / Property | home mortgage, home improvements, furniture | Long-term debt is a tie-down on your finances. Never take loan for home improvements and furniture. Only take loan for mortgages you will put for rent or real estate investments. |
| Vehicles | Cars, repairs, motorbikes, insurance | Cars depreciate quickly; and you spend to keep them going. Borrowing for them creates a liability, not an asset. |
| Education | Tuition, professional courses, tech/tools | Most of these are not worth taking a loan for because of unclear return on investment (ROI); you risk being in debt without increased earning power. |
| Business | Equipment, stock, startup costs, software | Startups fail often, and such loans easily lead to personal financial ruin. You can only take a loan on a business that is thriving (for expansion or product dev.), and you should be in that business profitably for years. |
| Lifestyle | Travel, weddings, luxury goods, subscriptions | These are non-essential; financing them builds consumer debt with no value return. |
| Health | Medical procedures, glasses, dental, gym, wellness items | Some health expenses are urgent, but borrowing for elective care can strain finances. |
| Family & Emergencies | Funeral costs, maternity care, legal aid, home repairs | Emotional stress may cause rushed decisions; high-interest emergency loans can worsen your hardship. |
| Investment | Stock market and other investments like crypto, Multimarketing, etc | Returns are never guaranteed; leveraging debt increases the risk of major losses. |
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