The loan or credit decision must be made rationally
Take a loan or a loan? Best quickly, without thinking, because this offer may not happen again. And what will happen later? And that will be seen.
You have made the decision that it is necessary to buy something. It’s best for a loan. But is THIS really the thing you need now?
Remember that you are going to buy it for money borrowed from a bank or loan company. It may be worth choosing a cheaper product or possibly considering temporarily stopping the decision. Maybe it is worth to wait and buy the item from savings? For example, would stopping your purchase by 6 months affect your life? Because a loan is not only a burden on home finances with a loan installment, but also a price that you have to pay for the funds available.
However, you can not wait and the loan must be on NOW. Do not choose the first best opportunity by suggesting a bank or loan company’s advertising. Advertising is to make you choose this particular institution without thinking about it. It’s not a nice actor or puppet who will pay for your commitment. It is you, each month, out of your own pocket, that you will give away your savings for using someone else’s money.
The decision about taking out a loan or loan should be preceded by the calculation of your creditworthiness. Yes. Not only does the bank do it, you also have to do it. Honestly calculate whether you will have the possibility of timely repayment (credit installments) and whether it will not be too much of a burden for the household budget. The bank may determine that you have sufficient creditworthiness and you think you will pay back, but you do not know that you have a loan company commitment. The statement of revenues and costs in the home budget allows to state not only whether the credit installment will fit in, but whether there will also be a margin of cash for unexpected expenses. Otherwise, you may fall into a spiral of debt, which means you need to take another loan…