A loan was the waste of money

Life is another name of uncertainty, and naturally, ups and downs are both part of life, and no one can ignore them. Several times, or many times, because of uncertainty, we face financial crises, and at some point in life we are forced to take loans. Sometimes, to make the future better, we also take loans, like businessmen usually do.

Many people think that loans are a very bad thing, and in the end, people suffer losses for taking loans. In my case, it's right, but not every time, because sometimes taking the risk of a loan is worthy. If loans only brought losses, then businessmen who had enough money would not take loans. So the output of loans can be positive or negative based on the situation, time, and for what purpose loans are taken. Unnecessary loans bring only losses, and we should try to avoid them.

In my lifetime, I have never taken any loans from anyone because my parents were always there when I needed any financial help. In the case of loans, my father is against it because he thinks that taking loans is a bad habit and keeping distance from them is the best way. In most cases, I think that kind of mentality helped him not to take a loan, and I feel it was good and made him rely on his own money. So in my family, there is no history of loans to share, but I have an interesting story of my best friend related to loans, and I think it's perfectly fit with the contest prompt. So I am going to share about it.

If I am right, then, one of my best friends has taken a loan from the goldsmith, and the amount of the loan was approximately 150 dollars. The easiest and simplest way to get a loan was from a goldsmith, but for that, one needs to provide goldsmith gold, which should be more valuable than the loan. On a weekly or monthly basis, one can pay the installment, but the interest rate is moderately high, and after completing all the installments, the goldsmith returns the gold. Because of it's simplicity, many people go for it. My friend needed money for an emergency, so he took out a loan, and as a backup, he gave him a rocket of gold from his mother, which was worth more than $250 at the time.

Everything was going well, and he almost gave half of the installments. Uncertainty striked again, and he faced another financial crisis, which restrained him from paying the remaining installments. After spending some months like that, he almost forgot about it, and like that, 3 years passed. One day, for some reason, he remembered about it, and he went to the goldsmith for an update on his loan. He didn't pay his installment, and after 3 years, he needed to pay approximately $200 with interest. He took a loan of 150 dollars, paid half of the installments, and after three years, he needed to pay 200 dollars more to retrieve the gold chain of his mother. It was kind of insane, but it was the reality. If he paid the money, then it was a sure loss for him. So, thinking about it, he decided not to take the gold chain.

Unfortunately, he missed one important point, and it's that the price of gold has already increased in those 3 years. He realized it when the gold price started to pump, and one more year had already passed during that time for what more interest rate was added with installments. Gold prices increased more than 3X. He started to regret the decision because he paid half of the installments, and at the same time, he also lost the gold chain, whose price increased more than three times. It was a loss for which he still regrets, and it's very natural. It's the loan for which he suffered losses.