A guide to borrowing money.

A guide to borrowing money.

Hobbies

Should I Get a Cheaper Hobby?

All of us have things that we like to do in our spare time. Sometimes these things are very cheap, such as watching the television, but sometimes they can be very expensive such as touring the world. Normally, hobbies can vary in cost as well, depending on how much you choose to spend on them. However, you might be at the point where you worry that your hobby is too expensive and are considering changing it. It is a good idea to think things through carefully first.

Do I want/need a change?

It is a good idea to start by asking yourself if you need a change. It might be that you change your hobby from time to time anyway and therefore perhaps you will find that if you do change to something cheaper then this will give you a change and a break. Many of us like to keep our hobbies all of the time though. It is a good idea to think about whether you do want to stick with it or not.

Can I cut costs?

If you do decide to stick with the hobby, then it is a good idea to think about whether there are any ways that you can cut costs to make it cheaper. It could be that you can get more budget items to use for it and this will mean that you will be able to afford to continue with it but you will not need to pay out so much money. You should be able to search online as well as looking in local shops to see whether you can buy things which are cheaper. Of course, whether this can work with very much depend on what your hobby is.

Do I have resources I can use without buying more?

It is a good idea to make sure that you check what resources you have already. Depending on what your hobby is, you might find that you already have a lot of resources that you can use and therefore you do not need to worry about finding more. This may not always be the case, but do check. You may find that you have things that you had forgotten about if you have a good sort out.

Once you have thought about this, you will be able to make some better decisions when it comes to your hobby. You will be able to think about whether there are ways to make your hobby cheaper or whether you have enough resources so that you do not need to buy more things. Of course, sometimes, with certain hobby’s we can find that we are often tempted to buy more things even if we have a lot of resources already. This can be a problem but it is a good idea to think about whether it is something that you can take control over. If you keep buying art materials, for example, then perhaps stop watching tutorial videos, looking at social media art groups or looking in art shops. If you are not aware of what materials are available then you will not need them, you will effectively be removing temptation. You could also set yourself a strict spending budget to stop you buying too much.

If you have a hobby which is expensive and you cannot cut the costs then you may find that you will have little choice but to give it up. It might be that you can put it on hold until you have the money available to do it again. This can be hard, so if you do have to do it then make sure that you have a hobby to replace it with to make you feel better.

Bad Credit

Should I Borrow if I have a Poor Credit Record?

If you have a poor credit record, then this means that your borrowing options will be limited. You may still be able to get loans from some high street banks but you will be limited in how much you can borrow and you may be charged higher amounts of interest. You will have the option of no credit loans which will tend to be for smaller amounts of money. It is worth thinking hard about whether borrowing is a good idea.

Is it necessary to borrow?

Whether you have a poor credit record or a good one, it is always a good idea to think about whether you really need the loan. This is because there are costs to taking out a loan and you only want to pay these if it is totally necessary. It is a good idea to calculate how much the loan will actually cost as this will enable you to decide whether you think that it is worth it. Consider what you are buying with the loan and whether you think it is worth paying this extra money for it.

It is also worth thinking about the item you are buying with the loan. You need to think about whether you really need the item. If it is an item that you could do without, then perhaps it is not worth getting a loan out just for it. However, if it is an item that you really need then it might be worth paying the extra money to get it.

Good vs bad debt

It is also worth understanding good versus bad debt. Good debt is a loan which you can afford to repay and that you have researched to ensure that it is the right loan for your needs and offers good value for money. You need to make sure that any loan you take out fulfils these criteria. A bad loan is one that you take out without being able to afford the repayments, that is unnecessarily expensive and that does not suit your needs. In order to make sure that you are getting a good loan, it will be necessary to some research. You will need to know about different loan types, about how much they cost and how much the repayments are as well as which lenders offer good value. This will take time to research but it could make a significant difference to your borrowing experience if you find the right loan at a good price.

Credit record and borrowing

If you have a poor credit record then you will have less loans to choose form and this could mean that you will not be able to get such good value for money form the loan that you take out.

It is also wise to think about why you have a poor credit record. If it is because you have struggled with loan repayments before then you need to think about whether you think that you will be able to repay this loan. Think about whether anything has changed that will make you more able to repay compared with before.

It is a personal decision as only you will know whether you feel you will be able to repay the loan and whether the loan is necessary in the first place. It is worth a lot of thought though as if you make the wring decision it could mean that you will end up struggling to repay a loan or worse having things repossessed because you cannot keep up with the repayments and you do not want this to happen.