Is it worth taking a loan – tips for and against
Is it advisable to use loans? Are the conditions offered by many domestic banks favorable? Is it worth taking a loan?
The answer to the last question is very individual. How many people, so many opinions. Some believe that you need to live here and now. Let it be in debt, but in a big way. But others are so afraid of financial transactions that they are ready to live in rented apartments for decades. And pay monthly rent. Others use such services only in exceptional cases. For example, if you need expensive treatment.
Although high-tech medical care is free. But not everyone can wait in line to receive a quota.
We define goals
It is difficult to find among our compatriots those who have never encountered a consumer loan. Because the desire to purchase any product for which there is not enough money is prompted by skillful advertising. And in every store there is an installment plan.
Therefore, the temptation is great, and it is difficult to deny yourself the desired things. So credit societies are developing well. And get more and more new customers.
But is it worth taking a loan now? Here it is important to focus on the level of monthly income. And it would be nice to immediately deduct regular expenses from it. Namely:
- utility bills;
- payment of mortgages and other loans;
- existing subscriptions;
- medical services, medicines;
- gasoline, etc.
Then we determine how much of the remaining amount we can easily say goodbye each month. We try to evaluate our own strengths adequately. And taking off the rose-colored glasses. If this amount is sufficient for monthly loan payments, and the salary is fixed and the job is reliable, then the desired purchase can be made.
Often, clients of various organizations quite calmly put their signatures on any documents. And absolutely do not delve into their content. But this often leads to trouble.
It is extremely important to thoroughly study the terms of the contract and delve into every word! If a bank employee is in a hurry to put down signatures, it is better to study what is written in the documents even more diligently. Because most likely there is something wrong.
Avoiding bad situations is easy. To do this, it is enough to take papers for review home. And focus on the text in a relaxed home environment. Your signature on the documents will mean that you have read and agree to all the terms.
You don’t have to be shy to ask questions. Answering them is the responsibility of the bank employee. Because the contract may contain conditions with which the consumer does not agree. And in this case, it is worth weighing the pros and cons again. It is likely that the papers should not be signed.
Remember that making your monthly payment on time is your responsibility. Before signing the contract, accumulate funds in case of force majeure. Because the emergency reserve should be equal to three or four payments.
Is it worth taking out a car loan now? Not everyone can pay for an expensive purchase right away. A few hundred thousand 🪙 is already a problem. And the amount of more than a million for most seems something transcendental.
If a car is not just a whim, but a necessity (for example, for work), then taking a loan is a good opportunity. Of course, any loan involves the payment of interest and banks dictate their terms. Therefore, the overpayment for the car is guaranteed.
But in the absence of free money, you can take a car on credit on favorable terms. Many organizations offer low interest car loans. But such offers are still worth a good look.
Should you take out a home loan? Young families need better living conditions. But government programs cannot provide affordable real estate for all categories of citizens. Therefore, it is extremely difficult to save up for an apartment or a house. If there is no high income, of course. And it will take years to get the required amount. And by that time, money will be significantly depreciated.
Taking advantage of the mortgage lending program is the only right decision. So you will not pay for rented square meters. And get real estate. But you will also acquire new obligations. Namely, the regular deposit of a certain amount without delay.
Analyzing the financial services market, experts rank the most profitable offers of banks. And we advise you to look for them. Because before buying a home, it is better to find an organization with optimal conditions.
Reading between the lines
It is important to pay attention to the additional services prescribed in the contract. Because the minimum interest rate is not a guarantee of low payments. And the bank can dictate its insurance conditions. Or even impose a number of services that are not mandatory at all.
When making a deal, be prepared to pay commissions. For example, for consideration of an application, direct issuance of a loan. And transactions with currency exchange, movement of funds on accounts, etc. Often, special bank cards are required. And they also charge a fee for issuing them.
Often the bank insists on the services of a specific real estate appraiser. But to agree or not to their terms is an individual decision of the client. But remember one thing. If you apply to another bank, the assessment will have to be repeated.
Is it worth taking a loan – About insurance and currency risks
When applying for a mortgage, the property is pledged by the bank. Therefore, it will not be possible to bypass the payment for property insurance services. Additionally, the borrower is offered to insure his life and health, property rights, etc. In case of refusal of these services, the interest rate increases. It is necessary to compare the amount of insurance payments with the difference in the increase in interest and choose the most profitable option. Often an increased percentage is more optimal than the total payment of insurance premiums.
Currency fluctuations, changes in the market value of real estate, inflation are the real problems of the borrower. Experts recommend taking a loan in 🪙 and not agreeing to other conditions.