I need approximately $3,000 for my second semester of college and i am thinking about maybe borrowing about $4,000 and putting it aside in case i dont have enough for all my bills one month or something... is that a good idea or should i just borrow what I need and nothing more
2007-11-13 06:32:39 · 8 answers · asked by Lissa 2 in Business & Finance ➔ Personal Finance
If you have a job, then just borrow what you need and nothing more. This will do 2 things for you:
1~ It will keep your monthly payments lower
2~ It will teach you to budget wisely
3~ HOPEFULLY, it will also teach you to not use credit cards for anything.
Good luck in school!
2007-11-13 06:41:24 · answer #1 · answered by Tom C 3 · 0⤊ 0⤋
Will you REALISTICALLY need the extra $1K for NECESSITIES?
If so, and you didn't have it, would you put it on a credit card?
Is the $4k a student loan with an interest rate less than 2%?
If you answered yes to all three of the questions above borrow the $4,000 and rest assured. Otherwise I'd figure a way around it - maybe get a boyfriend to spoil you so you can save a few bucks on booze and food (or whatever you're into).
Good luck and don't forget to have a **** load of fun!
2007-11-13 06:47:28 · answer #2 · answered by dinky eagle 2 · 1⤊ 0⤋
If the interest rate of the loan is below 4% and you put it in an account getting at least that or more then it might be worthwhile to take out the extra $1k. But if you have other savings or a high interest rate then this is a bad idea.
2007-11-13 07:48:27 · answer #3 · answered by voluntarheel 5 · 0⤊ 0⤋
Well, it never hurts to borrow a little more if you can afford it... The question is, what is the cost of borrowing that extra $1000? Knowing that should help you decide.
2007-11-13 06:41:36 · answer #4 · answered by Eric 3 · 1⤊ 0⤋
Is the security of having the extra money worth repaying the debt with interest(assuming you it is a loan and not a gift)?
2007-11-13 06:41:29 · answer #5 · answered by elephant t 3 · 1⤊ 0⤋
So what you're saying is that you would love to pay extra interest as a just in case measure? That would only make sense if you're paying nothing in interest and are kind of iffy on if you even have to pay it back - i.e. mommy and daddy lent it to you.
2007-11-13 06:40:40 · answer #6 · answered by Lex 7 · 0⤊ 1⤋
Only if you can afford the payments, and the payment schedule doesn't stretch the loan out for years. Also, only if you have the discipline to not use the money for frivolous stuff, but save it only for stuff you truly need.
2007-11-13 06:41:30 · answer #7 · answered by Ralfcoder 7 · 0⤊ 1⤋
yep get as much as you want
2007-11-13 06:46:28 · answer #8 · answered by Anonymous · 0⤊ 2⤋