How to Get a Loan & Not Get Caught up in Debt?admin
Credit is a convenient financial tool if you know how to use it correctly. However, borrowed money requires responsibility, discipline and the right approach to choosing a loan. We explain how to avoid a damaged credit history and headache, using six typical borrowers as an example.
Do not overestimate your financial capabilities
Before you take a loan, take a break and think how much you need this money, whether you can do without it and how you will return the amount received. Consider not only your salary or pension, but also possible difficult circumstances. Dismissal, illness or crisis can disrupt the most elaborate plan.
Expert Comment: There is a simple and important formula: the size of the monthly loan payment should not exceed 35% of your monthly income. Focus on her. Better yet, make a financial plan to accurately predict income and expenses.
Do not take a loan in the first bank
The proximity of the branch or a bright sign is not the best criterion for choosing a bank. The market is full of offers, so study options in several organizations. Compare conditions and cost to choose the loan that suits you as much as possible. Do not forget to inquire about the reputation of the bank. If you are a student or senior citizen, notify a bank employee about this: perhaps special offers are available for you.
Expert Comment: These banks have licenses, good reputations, many loan offers and customers. To understand which one is right for you, compare the terms of the loan both there and there. How much will you pay in a bank located in a neighboring house and in a long one? Perhaps the overpayment is insignificant and you will spend more money on the road? Or maybe, on the contrary, you will save a significant amount. Study, count – and it will be easy to choose.
Do not forget about your rights
The Internet is full of creepy stories about brutal collectors and heavy penalties for late payments. Get a loan or a loan only in organizations that have a Bank of Russia license. Do not borrow money from black lenders – and then nothing bad will happen to you, banks and collectors act according to the law. If the lender is a fraudster that threatens you and violates your rights, contact the police.
If the circumstances are such that you cannot make the next payment, lose your job or get sick, do not hide, do not change the phone number, but honestly talk with the bank representatives . This does not mean that you will be forgiven for the debt – you will have to repay the money anyway. But it is likely that the bank will grant a deferment or recount the amount of contributions. For example, it will reduce the amount of monthly payments by increasing the loan term.
Expert Comment: If you are not sure that you can repay a loan, it is better not to take it. If you decide to take out a loan, but want to keep everything under control (which, in fact, is correct), you should insure yourself against disability and work. And of course, take a loan only at a bank that has a Bank of Russia license; do not contact doubtful creditors.
Do not sign the contract if you do not understand its terms
Do not be too lazy to read the entire text of the contract, this will save you time and money in the future. Carefully study all the conditions for issuing and repaying a loan. Pay attention to commissions, late fees, additional conditions like insurance. If something is not clear, ask the bank staff, ask for an explanation, consult with a lawyer. Sign the contract only when you have clearly understood all the conditions.
Expert Comment: Yes, you can refuse insurance under certain conditions, for this there is a cooling period . But there is a chance that a loan without insurance will have a higher rate. First carefully consider both options, with and without insurance.
Do not delay loan repayment
Follow the payment schedule and do not delay the next payment at the last moment. It makes sense to lay 5-7 working days before the payment date so that the money can be credited to the account. It is not superfluous to put a reminder on your smartphone or hang a bright sticker in a prominent place. If you have the opportunity to repay the loan in advance, use it. This will save you from possible problems in the future – suddenly there will be difficult circumstances and you will not be able to pay the next installment.
Expert Commentary: Sad, but nothing can be done. A new payment schedule could be taken at the bank that issued you the loan. You can also clarify the amounts and terms of payments by calling the bank hotline. In addition, the payment schedule is most likely displayed in the Internet bank, if your bank has such a service. And do not forget: the smartphone has a reminder function, use it next time.
Do not forget to close the loan
If you made the last installment and seem to have closed the loan, do not rush to breathe a sigh of relief. Call the bank hotline, confirm the loan closure again or get a certificate. Check your credit history . Twice a year it can be obtained free of charge from a credit bureau.
Expert Commentary: Most likely, you just deposited money into your account and didn’t make an early repayment in any way. The bank wrote off the next monthly payment, and the remaining money is still on the card. The conditions for early repayment are specified in your contract, specify how to do it correctly. Just in case, it is better to take a certificate from the bank that the loan is closed.