Credit and loans: Even when borrowing money can be saved
Each loan has its price. Well-informed consumers can borrow money but also save on costs. Every loan means that you also include an additional financial risk. Well-informed consumers can realistically assess this risk and avoid typical pitfalls of many first place. Here are some tips you should be observed before taking a loan.
Assess your financial situation realistically
Check honest, how much you can branch off from your regular monthly income during the entire loan term for rates without the need to restrict excessively. You should always take into account the foreseeable future for you income reductions or cost increases. The monthly rates possible exposure should not exceed 15 percent of your net household income. You may not have succeeded so far in spite of good intentions, a month to cover a similarly high savings rate - and not just to spend it - you should rethink your monthly installments-load again.
Think carefully about whether you are what you are buying with a loan that actually need immediately. Logical: Who saves until he has gathered the purchase price, avoids the cost of borrowing.
Recognize warning signs
If you are denied the desired loan or savings bank, consider this as a warning sign. Banks and savings banks refuse to do business and not a loan for no reason. Questioning the reason for rejection, however, and you must re-think your economic situation.
Do not go to credit intermediaries
They lure in advertisements with "light-weight, easy instant loans." But credit brokers charge high commissions. This is often not paid directly to the agents but on the loans "financed". There are drawbacks: In addition to the costs incurred by the bank for the loan, you pay interest and processing fees for brokerage commissions. Not infrequently, a loan is mediated in part payment of a bank whose interest rates are much higher than commercial banks or savings banks. Increasingly, however, is not even expensive loan delivery, but instead sold as "asset management" and similar contracts that are worthless for the loan seekers. Because the promised performance - that is "debt settlement" or "debt management" - is usually too expensive or can not for legal reasons of the relevant undertakings.