Borrowing money is inevitable in one’s life time. We all have to borrow for major purchases like a house, a car, or an education. Sometimes, we may have to borrow for unexpected life events that we were not prepared to face financially. Regardless of the need to borrow, you have to be careful of the amounts borrowed and your ability to pay back these loans. Borrow only what you need for a specific purpose. Being eligible for a loan does not require you to accept the maximum amount the lender allows you to borrow. Always remember that a loan will have to be paid back plus interest, so always ask yourself how badly do you need to borrow and if you could find alternative funding to borrowing.