Think twice, borrow once Your repayments should never be more than 30-50% of your monthly income. Test any ideas about taking out a loan on the ‘want vs. need’ scale. If you only want something, don’t take out the loan. If you truly need it, a loan might be a good idea. If your application is turned down, ask why and take any recommendations on board for the future. When applying for a loan, trust the consultant – and your instincts. Borrow only as much as you need and not a cent more. Only when you’re truly prepared to go without 40% of your monthly income are you ready to take out a loan. Gifts should come from the heart – not from borrowed funds. Loans taken out in haste are often the heaviest burden.