February 22, 2017 Sudden, unplanned events that heavily burden our wallet like to happen to everyone. Everyone was dealing with unplanned expenses, through which our financial balance is upset. Then the loan seems to be a good way out of a critical situation. However, there are times when we abuse the generosity of lenders and reach for loans for trivial reasons. In such situations, we should use common sense. Frequent borrowing can bring not only cash, but also unpleasant consequences.
Who borrows the most?
Who are the clients of loan companies? Statistically, women are more often in debt in non-bank institutions. A lot, because around 63% of borrowers are fair sex. Research shows that men are more reluctant to take loans online and this is usually their last resort.
Stereotypes are created about borrowers, which usually have nothing to do with reality, and certainly not with statistics. It would seem that poorer people make debts more often. Well no. People whose budgets are tightened are more sensitive to the dangers of borrowing. On the other hand, taking out loans is not avoided by the middle class, which tends to increase its creditworthiness. Those of us whose payments exceed PLN 3,000 are the most frequent clients of loan companies.
If the loan is repayment. Problems may arise with the return date. But not necessarily. There are some ways to deal with preparation for this judicial day of the month and make repayment easier. First of all, when we define loan parameters, we cannot choose the repayment date without thinking. This decision requires a longer analysis on our part. Each of us knows perfectly well in which days we are “the richest”. It is best to choose the date of the loan on the day when you will definitely have the money for it. However, according to recent studies, we have delays in repayment, not because we can’t afford it, but because of our negligence and forgetfulness.
Sometimes there are situations when we have additional funds. It is worth thinking about paying off our debt earlier, because in most cases it is very beneficial for us. With this move, we can save a lot – the sooner we give back the borrowed cash, the lower the costs we will incur. This will happen because the lender will subtract the interest that we would have to pay if we repaid the loan according to the previously agreed procedure. However, rush when settling with the lender is not always advisable. It is an individual matter and it is better to delve into the contract before making a decision.
Take care of your credit history
Timely repayment of loans is the most important element in building our credit history, which is very important in the economic sphere of life. In addition, thanks to demonstrating timeliness, we are perceived as recipients who can manage their finances. Hence, we become credible. If we stick to the deadline that we and the lender set, it will be easier for us to apply for further support in the future. A promising exemplary attitude will also bring us benefits in the form of better conditions. Loan companies can reward their clients with profitable offers that are not available to others.
Responsibility above all
Responsible borrowing is really difficult art. The secret of how to borrow as much as we actually need is known to a few of us. It is worth making calculations and choosing a loan that will exactly cover our needs. You should not succumb to various types of promotions that encourage a lower installment, but carry a higher amount of commitment. The best borrowers are great analysts who borrow exactly as much as they need.
There are various reasons for taking an online loan – renovation, vacation, new car. Loan companies, unlike banks, do not get into what we borrow money for. This is a nice concession because nobody likes to explain to their strangers their financial plans. However, we must prove responsibility here and decide for ourselves if the loan is definitely necessary. And if it is, in what amount. If we meet the conditions of a trusted borrower, the lenders are willing to agree to entrust us with certain amounts. However, we should be cautious and not borrow when we know that this is not the final solution to our current situation. Otherwise, we can get used to easy access to money that is not ours. This habit may be the beginning of problems that are not easy to free yourself from.