Financing is getting easier. Many do not take advantage of it. Others are unaware of the danger of not doing things well.
If we want to have healthy finances, we must take the credits with conscience and not because of the overflow of some emotion.
With these 5 questions you can begin to see if the loan to take will be well built.
1. Is it useful for me?: a walk is not a utility. Yes, it is doing a business, buying a home, reducing expenses by consolidating other debts, etc. It is not that you do not like financing, the utility can be to enjoy. I do not recommend that the sum of non-performing loan installments exceed 10% of our net income. Less than 5 would be reasonable.
2.How is my credit score?: checking it once a year is the minimum. But before taking a loan it is essential. A good score opens doors for us and lowers costs. Knowing how to use it can help us. We can raise odds by canceling credit cards that we don’t use or lowering limits that we don’t need, because they free us up credit.
3. Will I be able to pay the installments?: the month following taking the loan, perhaps our income will remain the same, the responsibilities that we will face, no. We must attach the quota of the loan. Something we will have to stop consuming. I will be able?
4. How is the movement of rates expected?: If it is thought that they will rise, the term that I will fix it will be longer. If they are high and there is a vision that the trend will be downward, it is time to contract short terms. Following a specialist in predictive economics (independent of political tendencies) may be the solution. Asking a trusted advisor is another.
5. Which institution gives me the best conditions?: Not always where we are faithful will be the ones that will have the conditions of my convenience. Rates, periods, validity, being able to make payments, etc. These are issues that we must analyze carefully. And know how to analyze, above all.
These are not the only points to take into account, but they are a good start. Also, essential.
How to put the traitors of your personal finances in line?