10. Borrowing Money At High Interest
Borrowing money at high-interest rates is never a good idea.
By high-interest loans, we are not talking about those loan shark gangsters that you see in the movies that extort money from their customers, but we are talking about high-interest credit cards charged by most credit card companies.
With the average credit card interest rate at around 19%, your side hustle could be over before it begins if you get things wrong.
Not only will you end up paying a lot more than what you borrowed, but it can also ruin your credit score. The best way to borrow money is to use a low-interest loan from a bank or, even better, try and negotiate with the company you are buying from.
In general, it’s not wise to borrow more than you can pay off in full each month, no matter what the interest rate is.