Sometimes we face obstacles on the road to achieving our dreams – little setbacks that either delay us or may even permanently halt our dreams. Most of the time these challenges are things that can be fixed with a little help – whether by physical, emotional or financial means.

Duncan Johnson, a gifted saxophone player, was recently accepted for an audition to a prestigious music school, but just before his audition his saxophone was stolen. Threatening to take away his dream opportunity and his livelihood, this incident left Duncan distressed. He was only left with two options – to give up on his dream or to apply for a loan, which would help him purchase another saxophone in time for his audition.

Duncan went with the second option and applied for a Personal Loan, which enabled him to buy a new saxophone. He played his heart out at his audition and was accepted into his dream music school.

A Personal Loan can help you settle unexpected financial emergencies similar to what Duncan had to deal with in this short story. Taking out a loan can be a good choice when in a tight financial situation where you don’t have the immediate lump sum that you need on hand. Some financial institutions give you the freedom to decide on the loan amount, and you can choose a loan repayment term that you can afford.

The most important thing you should consider when taking out a loan is whether the debt incurred is good or bad debt. And while the idea that there is such a thing as good debt may come as a surprise to you, Duncan’s story is a good example of good debt. It is money that you borrow for an investment that will grow in value or generate long-term income. Good debt leaves you better off than you were before. If what you will use the loan for will generate greater income, then it could be viewed as good debt.

Education has been classified as the first and arguably the most beneficial form of good debt, in the form of getting a loan to pay for education. This is good debt because it’s expected that education will allow you to generate more income than the value of the loan. And education brings plenty of other benefits, which additionally increase its value, making it a good debt.

Now that you can identify the difference between good debt and bad debt, and how a Personal Loan can make a dream come true, as depicted in Duncan’s story, you should be able to make smarter financial decisions.