When to take out a loan – calculate your loan

For comparison, you need: the amount of the loan, the payment date, the due dates, the start of repayment and the monthly repayment rate. To take out a loan, you generally need an open-ended employment contract. It also matters how much the loan should be, what you want to buy, term, security, etc … When is it worth taking out a loan? The extent to which a loan is worthwhile depends, of course, primarily on the reason for which it can be demonstrated.

But when does it really make sense to take out a loan at all?

But when does it really make sense to take out a loan at all?

But when does it really make sense to take out a loan at all? However, the volume of credit for a regular salary can easily be repaid over several years or decades. This only makes sense if there are significant outstanding claims that cannot be paid in installments and the current financial situation does not allow the debt to be paid in full.

When does a loan make sense? Don’t take out loans without a plan!

When does a loan make sense? Don

The term credit creates different connections in many people. Some people have a negative attitude towards a loan because they have had bad experiences with them or are afraid of having them. In contrast, other people are very happy that there is a loan and that it helps you in a certain life situation.

So even when asking whether a loan makes sense, you have to take a close look at the respective situation in order to take the assessment. When financing consumer goods, it is advisable to waive the loan. The joy of such purchases is usually short-lived and repayment takes longer over a longer period.

Consumer goods are first and foremost: The basic rule is: If you cannot afford such purchases without credit, you will end up paying even more. The person who can finance an annual vacation with a loan pays the partial payments in the order of 2-3 years. If the repayment has not been made by the next public holiday, the credit must be increased.

This is how you get into a credit spiral that has no end.

This is how you get into a credit spiral that has no end.

Exceptions: If it is a special holiday, for example a honeymoon, where the costs are significantly above normal and the funds are not made available as quickly in another way, borrowing is justified, especially if the costs of the loan are appropriate.

A loan can be particularly useful if the lifespan (useful life) of the acquisition is longer than the loan term. If the acquisition is worthwhile over time and the acquisition cannot be made without a loan, a financing solution is recommended. Sooner or later, the purchase takes place because the apartment is populated for a longer period and must therefore be equipped with household electronics and furniture.

In the case of a reasonable monthly fee, funding is recommended as the cost of the loan can be accepted. If a vehicle is needed for work and the acquisition can no longer be postponed, the investment is justified despite the loss in value of the vehicle and the existing costs for loans. Monthly loan installments and the rental costs to be paid are compared, particularly when buying property.

The rental price is then more expensive than the borrowing costs paid, except for the fact that at the end of the loan the property has a corresponding value and the rental fee is no longer payable. Exceptions: Even if a purchase seems to make sense, it should not be overlooked that the monthly costs should not be too high.

This is because unforeseen expenses may arise during the term of the loan, for which financial resources must also be available. This means that even significant purchases can reduce the desire for the things you buy with a high level of economic utilization if you no longer have free money on hand. It should also be assessed whether the loan makes sense, including the cost of the loan.

The lower the cost of credit, the more reasonable the financing option appears. Each borrower should ask himself the possibility of buying the item at the amount he would have to pay at the end of the loan repayment. Because the cost of credit is often so high that you end up paying almost twice as much, it is essential not to be confused by the possibly low monthly burden.

It should not be overlooked that in addition to interest, hedging is also often carried out, which also drives up the actual credit costs. With every form of financing there is also the risk that the credit burden will be transferred to the close relatives in certain life situations. The waiver of credit protection must also ensure that your own performance and your own performance are not restricted during repayment.

Small increases in interest rates also have a noticeable effect, especially for large loan amounts and longer maturities. In addition to voluntary funding, there are cases where you cannot avoid a loan. Whether in the event of death in the host family, where the funeral costs are to be borne or in the case of illnesses, where a lot of funds are quickly needed for remedial measures, a loan must occasionally be drawn on.

Creditworthiness comparisons via credit-without shop bookings enable you to determine the optimal lender in good time and to get the capital quickly and easily. When does a loan make sense?

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