Going on a school trip is one of the things that students look forward to doing, especially during the school vacation periods. However, in some cases, some students might not be able to afford paying for a holiday, and this makes them unhappy. This probably explains the reasons why a lot of students opt for a microloan to finance their school trip. But, is it a good idea to take a micro loan for a school trip?
Everyone has their opinion about whether or not it is a good idea to take a microloan for a school trip. To be candid, as interesting as taking a loan may sound, paying back might become a problem. According to research, the number of students who take out microloans has greatly increased and a good number of them don’t even have the slightest idea of what they are getting themselves into.
For those who think getting a loan is a great idea, there would be the need to do business with a finance company to get one. Do you wish to take a microloan? Read reviews and feedback from reviewsbird.co.uk. There, you will discover some best loan companies to deal with, in order to get your loan. While a school trip offers a lot of excitement and fun, we would not advise any student to take a microloan to go for one, and here are the reasons behind our thinking:
1. The Loans Surely Comes with Interests
One bad thing about taking a micro loan is the fact that they come with interests, and in some cases, these rates are significant. Most people turn their eyes away from the interest rates when they want to collect a loan. This is because they were probably eager to get the funds. In the case of a student, every little resource counts, and paying interests on a loan taken for merriments and fun might not be a great financial decision to make.
2. Failure to Repay Leads to Delinquency and Affects Your Credibility
When you fail to repay your loan on the agreed date, it becomes a problem. Your loan becomes delinquent and some microloan companies will add late charges to the amount you are expected to pay. Yes, there are extensions in some cases, but if you fail to pay after this extension period, you might even be reported to a credit bureau, and this has a telling influence on your credit ratings. Once your name has been blacklisted, getting a loan in the future becomes a major problem.
It May Affect Your Tax
It is easy to take a micro loan, but if paying back becomes a problem, this might affect your tax payment, and a percentage of your default loan is added to your tax payment.
Taking a microloan to go on a school trip might not be a good idea, because paying back might be too much of a burden on you. There are several other ways you can raise money for your school trips, such as asking for donations from family and friends, seeking a scholarship or grant, using the crowdfunding option etc. Why take a microloan when you can opt for other alternatives of raising funds without going into debt?