In general, you should only borrow for essential things with long-term benefits . For example, on a new washing machine with which you save more than you pay the bank with interest.
1. Make sure you really need the thing
Choose a loan in the case of financing housing, education or business – things of a long-term nature.
On the contrary, we do not recommend indebtedness due to a new mobile or birthday party. These are useless in the long run . Be aware of how much you would overpay your new mobile to pay interest. You’d better save him on paycheck.
2. Calculate whether you are able to make long-term repayments
You will repay larger sums for twenty or thirty years. Therefore, make a thorough inventory of your family finances . Calculate the necessary costs, discover unnecessary expenses and determine how much you can repay as much as possible.
Don’t forget about savings. Even with a loan, you should be able to save 20% of your family income on a monthly basis. We know it is difficult to save even a small portion of your paycheck, but you should at least try. Otherwise you have problems. What if you lose your job or get sick? For such emergency cases, have savings of at least three monthly salaries.
3. What to do if you don’t have money
Mainly keep cool head, every problem has its solution. In your case it is definitely not another loan . You will have to return this money, albeit a small amount to help you now. With high interest.
Rather, contact the lender and try to arrange a postponement of installments.
4. If you’re in trouble, consolidate your loans
If you suspect that you will not be able to repay your obligations, apply for consolidation. You will combine several smaller loans into one longer loan with lower interest.
Mainly do not delay, you can get into the register of debtors in one delay and you do not have to succeed with consolidation.