Unfortunately! The indebtedness of Poles is not decreasing as might be expected, but quite the opposite, it is growing. The number of people who are in debt increases every year. This applies to both new credit recipients and old ones who have new loans or whose loan suddenly becomes more expensive to pay off. This can be frustrating! To avoid credit problems, follow these five basic rules.
Rule one - can you afford to take the credit?
The vision of extra cash for essentials, shopping, a trip or money for an apartment is very tempting. However, the loan is not a donation from a bank or other financial institution and must be returned, along with interest charged on an ongoing basis. Therefore, you should count whether you can afford to borrow money and pay off your debt. Take a close look or make a list of your monthly income and expenses, supplementing it with bills as well as sums for food, clothes, children's school expenses, cultural events. Check how much you have left after summing up all expenses and if there is anything left, would it be enough for installments. enough for installments.
Rule two - evaluate the credit amount.
A credit or a loan is not only the amount of money that is directly received on the account, it is also the related commission and interests charged by the bank. Take this into account when calculating your expenses and income so as not to be unpleasantly surprised. Loan calculators available on the Internet help to calculate the credit installment with interest. By entering the planned loan amount, you can easily find out what the installment will be, what the interests will be and this way the situation will be clearer, so taking or resigning from the loan will become an informed decision. Always measure your financial strength against your intentions to avoid problems.
Rule three – plan your budget
After calculating your home budget and checking the total cost of the loan, you can proceed. Check what you can save on, what you can opt out of if necessary. Thanks to this, any fluctuations in the amount of installments and interest will not be a big problem and will not cause panic and the need to look for additional sources of money to pay off your commitment. It is important to have some financial reserve against unforeseen increases in credit fees.
Rule four - improve your financial liquidity
If you need to take out a loan and you are afraid that the repayment will be an excessive burden on the household budget, try to improve your income. Depending on your skills and possibilities, think about making extra money. Maybe you have a spare room and you live in a tourist town? Rent it. Maybe you are a good driver? Hire yourself as a part-time driver. Maybe you like to bake cakes or do housework, it's also a way to get additional amounts that can either be used to pay off installments or go to the home budget for current expenses. The amounts obtained do not have to be extremely high, but even small amounts will successfully repair your account balance.
Rule five - don't run away from the bank
Perhaps at some point it will turn out that repayment becomes a problem - maybe you change your job or lose it, maybe the interest rates will increase and each repayment will be a trouble. The worst thing you can do in this case is to run away from contacting the bank and pretend that you have no obligation. If you have difficulties with repayment, meet the bank representative or just contact the bank. Go to the facility, call, collect letters from the bank and try to work out a compromise in the form of smaller installments for a longer period of time. If you have several loans, it is best to think about consolidating them into one, the so-called consolidation loan. In this way, you get one installment to be paid off, instead of several.