Those of us old enough to remember the old Popeye cartoons undoubtedly remember the famous line from the character Wimpy, “I’ll gladly pay you Tuesday for a hamburger today.” Wimpy was introduced to the world in 1933, during the height of the Great Depression, which may explain his penchant for trying to take out personal loans to finance his cheeseburger habit.
Of course, Wimpy’s mooching was from his friends rather than a bank, and dealt with relatively low amounts. However, it does demonstrate a really bad reason for taking out a personal loan. Taking out a loan for an item that will be gone long before the loan is paid off is not generally a very good idea, nor is it often one that banks will look favorably upon, unless you have stellar credit (in which case they’ll gladly lend to you for any crazy reason). Here are some other examples of really bad reasons to take out personal loans:
Save personal loans for times when you really need to borrow money, or for things that you wouldn’t be likely to save enough money for. Using them to fill short term needs is almost always a bad idea. If you can avoid taking out the loan, then do so.