In an era of rapid economic development, consumption demand has increased significantly and has contributed significantly to the rapid growth of modern consumer lending. At the same time, mortgages are indispensable in people ' s quest for a secure and stable life. Then there is a question before us: the conflict between personal consumption and housing。

Is there a conflict between personal consumption and housing

First, let us look at the basic concepts of personal consumption and mortgage。

The personal consumption loan is a regular loan provided by a bank or a lending institution to meet the needs of the individual for his or her life and consumption. Often, such as travel, car shopping, purchase of furniture, renovations, etc., are consumer loans。

A mortgage is a loan for the purchase of a house obtained by an individual or family through a bank or other financial institution and is repaid through long-term instalments。

After learning about these two types of loans, we look at the feasibility of a personal consumption loan versus a housing loan。

The first is credit. Loan institutions and banks look at lenders ' credit appraisals. If an individual's credit rating is low, both types of loans are rejected. Thus, when applying for any loan, the first consideration is personal credit evaluation。

The second is housing. The need for long-term instalments of mortgages, and if there is a need for personal consumer loans during the loan period, then what? For the general population, if personal consumption loans and mortgages are made available, life pressure will increase and financial pressure will increase. Before buying a house, individuals should plan their own living expenses in advance, taking fully into account their own assets and consumption budgets。

Finally, interest rates. Interest rates on consumer loans are relatively high and those on housing are relatively low. At the same time, mortgages also benefit from a preferential interest tax policy. To the extent that economic power permits, low interest rates are chosen as much as possible。

In sum, there is no inevitable conflict between personal consumption and housing loans. Only when it is reasonable to plan its own assets and consumption budget can it be possible to choose the appropriate loan modality according to its actual needs. In the course of the loan, care must be taken about its credit evaluation, living expenses and interest rates to avoid financial difficulties。