I had a loan against property or a mortgage on the fixed rate basis at a 20 year term. Half way through the loan now. As we all know economy is going on a low, there will be less jobs, layoffs will be common, this makes it hard to keep up with all the fixed expenses you have especially when you are directly affected by the slowdown. I am retired but one of my kids is having a problem with his job. So have to cut down on my expenses and help him out. I guess worse times are coming ahead with respect to the economy and whole world would be affected in some way.
Taking a loan on a fixed term can be an expensive decision in this situation. You can not change the rates much while the fluctuating rate has gone down as a result of rate cut by the banks to increase borrowing and spending. This makes fluctuating rates as a better choice. I am paying more because I choose the other one.
You have to be very cautious while making a financial plan, you can not predict the future to the large extent, making estimated predictions and taking a calculated risk is ok but there will be a lot of things beyond your control. I like to keep as much control on the things as possible especially with relation to finances, It can back fire though.
I am planning to start up a boat rental business for which I would be needing finance. Though there are a lot of banks which offer good boat loans. I still have to decide whether to go for a consolidated business loan or go for boat loans. That would be in a few months. I guess boat loans would make a good sense. I can arrange the finances for the managing part of it through my savings. It is this business idea that makes things tough for me at present. Well have to go through the tough time so that I can go ahead with my plan.