Question

Before taking out a loan, you should ask yourself whether you can meet all of your essential expenses and still afford the monthly loan payments. This can be determined by

Answer 1

Adding up basic monthly expenses and subtracting this total from take-home pay, plus trying to find out ways or figuring out what to give up to make the monthly loan payment.

Step-by-step explanation:

A loan is simply a borrowed money that must be repaid at a certain point in time.

Before taking out a loan, it is better you ask yourself some questions like the reason for the loan collection, how much am i earning and willing to set aside for the loan repayment and will it be monthly and other questions.