Though lots of people tell you never to spend more money than you have at any given time, there are certain situations where that’s just sort of unrealistic. Sometimes, the purpose of a loan is to inject some opportunity to improve your life, with the understanding that you’ll have to work harder later, to get what you want now.

Five situations where loans can help you out in this manner, if used responsibly, include auto loans, home loans, business loans, consolidation loans, and short-term loans. Each has a different function, but all can be used in a way to leverage your future work (and money) into a better situation for yourself at the immediate present. [Read more…]