personal loan, loan mistake, credit impact, real life finance, Australian borrowing
Ethan’s Personal Loan Mistake — And What He’d Do Differently At 26, Ethan from Canberra thought a personal loan would solve everything. He needed $10,000 to consolidate some debts, upgrade his car, and take a short trip. But 18 months later, he found himself regretting that decision — and paying far more than he’d planned. 💳 The Loan That Seemed Like a Lifesaver Ethan applied for a $10,000 unsecured personal loan with a 14.7% interest rate. The approval was fast, the funds came quickly, and the repayments seemed manageable: $275/month over 48 months. But here's what went wrong. ⚠️ Mistake 1: Spending Without a Full Plan He paid off only some of his credit card debt, not all. Upgraded to a used car with higher maintenance costs. Spent $2,000 on a spontaneous trip — without tracking. ⚠️ Mistake 2: Not Comparing Loan Options Ethan took the first offer from his bank without checking comparison rates. He later discovered online lenders were offering similar...