Request a personal loan to be able to reach the end of the month, solution or problem?
July 3, 2018
- Before signing the loan, assess whether it will not further aggravate your economic situation.
- If it is decided, it is advisable that you readjust the family budget as much as possible.
- In recent times, consumer loans have greatly increased their interests.
The accounts do not come out, the expenses are not covered, what can we do? Requesting a personal loan may seem like a solution but it means returning this amount with your interests, so before requesting anything, we must analyze what its benefits and risks are.
And is that before asking for a loan we must reconsider all expenses, raise any necessary cuts and see the rest of the options. Think that any readjustment will help to assume future costs, although finally, we decide to request it.
If we finally choose the option to ask for financing, in the first place we will have to make numbers, it can be very useful a comparison of credits to see which is the loan that would be more profitable.
Consumer loans have seen their interest rate rise while their concession has been reduced.
With the crisis, interest rates on consumer loans have increased considerably while their concessions have decreased and consequently seeking and negotiating conditions is longer and more complicated.
Keep in mind that you should not abuse the amount to request. The most advisable thing is to look for a loan to solve a specific problem of liquidity, otherwise, the only thing they will achieve is that we aggravate our situation even more.
Only for conjunctural problems
It is important to not lose perspective and not deceive ourselves. We must flee from the “ball effect”, that is, ask for a loan to cover other debts, since we can enter an escalation that could be drastically broken when the concession is cut and we find ourselves with an unattainable debt. The same applies to credit cards, which currently have the same consideration of “pre-granted” consumer credit.
On the contrary, if we have an income horizon in the future and the problem is temporary, it is not a bad idea to request a loan or have funds from our credit card.
Hire a good loan
Requesting money from a bank to make ends meet is now quite complicated by the current crisis situation. The easiest way to get a personal loan is to ask PurplePayday.loan.
Many times we do not value sufficiently the importance of the payroll and entity accounts in which we link our periodic income. The reason is very simple: know our patterns of income and expenses by analyzing our banking movements.
If our bank denies us the credit it is possible that other entities ask us to link with them through some financial product If the bank we work with tells us that no or the interest is too high it will be time to find another entity that wants us to lend us the money, in exchange for our commitment to bond with her, in most cases.
We have to always offer something in return, direct the payroll, transfer our pension plan, take out the insurance of the car or the house with your insurer … in short, link with the bank. Cross business is essential if we want to get a good loan.
What should I value? Money and loan
To consider if a personal loan is better than another we have to fix:
- In the interest rate. For this, the APR of the different loans must be compared. The mistake is made to look only at the resulting installment when what is relevant is what we pay for interest (the fee may be lower simply for the longer term).
- Assess the term granted, which is usually between 5 and 8 years depending on the entity. Longer term decreases the fee, but we end up paying more interest at maturity. The mistake is made to look only at the resulting quota when the relevant is what we pay for interest
- Insurance Sometimes we are “invited” to contract life insurance, payment protection or another type of relationship that greatly increases the operation. Between two loans with similar APR, it is better than fewer binds.
- The amount they grant us. There is no use for a personal loan that is not enough for us to deal with a specific situation of difficulties adequately. However, we should not ask for more money than we need, this money is expensive.
- Never ask for a loan that you can not pay.
- You have to always run away from covering debts with other debts, the final effect could be catastrophic for your personal finances.
- Sometimes the only solution is to adjust the family budget : make a loss and income account in the home and, with it, see what income we can increase (rent an empty room, a second job) and what expenses we can reduce (however small it is seen individually, at the end of the month it is noticeable).