Anyone who has not borrowed so often in his life does not necessarily know what is important and what to pay attention to. Loans bring with them dangers that should not be underestimated. At this point, we will give you some personal credit tips that can be worth cash if they get attention. It's easy to get a loan today, but it's not so easy to save money. Find out how to do it.
Avoid using the discretionary credit. Disbursed loans are the most expensive loans that banks have on offer. Even today in the low-interest phase, the average customer pays more than ten percent interest when using the Dispos. The Dispo makes financial flexibility and is always suitable when short-term liquidity bottlenecks exist. Within three months, however, the MRP should be able to be compensated again.
Anyone who is already sitting in the dispenser, because the account is regularly guided in the target, comes out of it only when the Dispo is replaced with a favorable installment loan. This saves costs and the fixed monthly rate guarantees that the installment loan is paid at the end of the term.
Note: The posting is only for short-term account overdrafts, which can be compensated within a maximum of three months.
When it comes to borrowing, it is not only important to pay attention to the possible borrowing costs. Almost equally important is to make sure that the monthly burden is financially sustainable. The amount of the installment should be well calculated. Never plan all the disposable income for the installment. The rate should be affordable even when financially a little tighter. If the disposable income is not sufficient, the disposition is constantly used, then a loan for further purchases is not the right solution.
If there is clarity about the amount of credit that should be applied for, then a free credit comparison should be made to calculate the amount with different terms. Financial experts always advise to choose the term for loans as short as possible. But that's just a piece of advice that does not always fit. With low incomes, the financial scope is limited, so it is perfectly legitimate to choose a longer term to keep the rate affordable. At the same time, no consideration should be given to the associated higher borrowing costs.
The topic of residual debt insurance is also much and often discussed. Consumer advocates and financial experts warn against the residual debt insurance. The residual debt insurance is a cost driver and often superfluous. Many consumers see it differently. The residual debt insurance gives you a little extra security. The additional costs associated with the conclusion of a residual debt insurance are gladly accepted. Those who feel safer with residual debt insurance, should complete it. The residual debt insurance is indispensable whenever the monthly burden of the installment is so high that it can not be borne if income is lost.
Always remember the debt trap. The statistics of the past years show a clear trend. More and more people in Germany are indebted to the bottom of their heads and have to end up in private bankruptcy. A major cause of this dilemma is the ability to borrow anytime, anywhere. Many consumers tend to spontaneous purchases on credit. Later they lose track. The process of indebtedness is fluid. Suddenly, the money is no longer enough, rates can not be paid.
Protect yourself by not taking out loans spontaneously. Plan the purchases and their financing. Avoid loans of no value, such as vacation credit or the dispo. Keep a household book and uncover financial reserves.