Category: Careers


How a Loan Can Improve Your Career

Many people are afraid of borrowing money and think that it will only lead to them getting into trouble. However, there is a case to say that some loans could really help you move forward in life and that it could be worth borrowing money in order to do this. Obviously you need common sense and the type of loan and what you borrow for has an important impact.

The most common loan used to improve a career is a student loan. Whether you are already working in the field or you are studying something where you have not yet got work experience, you should see an improvement in your career prospects as a result. It is best if you complete and pass the course, but even doing it without completing or passing could help your career although there is no guarantee unless you actually get awarded with the qualification.

A career development loan can do a similar thing. This is something which students take out if they have already used their four year student loan allowance, had a grant in the past or are not studying for a degree. There are many courses that can get funding through a loan like this and in order to qualify you have to prove that you are doing a course that will develop your career.

These two loans work very differently though. The student loan has an interest rate which is set by the government and the repayments are taken out through your tax code and so you only make repayments if you are earning over a certain threshold and you only have to make repayments for thirty years and after that the loan is written off. A career development loan is more like a standard loan and you will have to make repayments as soon as the course ends regardless of what you are earning. The interest rates are set by the lender and can be quite high.

There are other loans which can also help you to develop your career but in a less direct way. For example, if you need a car for a certain job that you want to do, then you may need to borrow money to pay for it. Although the loan is not directly related to the job, if you have no other way of affording the car and it is essential for the job, then it is helping with your career. The same might go for getting driving lessons and borrowing money to pay for them if you want to do a job which requires one. It may be that you need money to buy some smart outfits for work or an interview or to buy a uniform. You may need to borrow some money for a deposit on a home if you move closer to the location of your job.

As you can see there are many ways that borrowing money could help you in your career. Some loans affect it directly by paying for training and others more indirectly. This just shows that if you are scared of borrowing money you could be holding yourself back. Some people avoid all borrowing as they think that it is risky and expensive. Obviously all borrowing is risky and has to be paid back and so you need to be sure that you will be able to manage that. It is also wise to think about whether you will be able to manage those repayments even with the job that you will be doing. If you are confident then it is worth going for it. This is because advancing your career is likely to lead to a pay rise. This will mean that not only will you be more than capable of being able to repay the money that you borrowed, but you will also be able to earn more in the long run and more than make up for the costs of the loan. If you do not go for the loan then it could mean that you will end up staying in a lower paid job, which will limit your earning potential. You may even find that you are not so happy in your work because you cannot progress.