Seven Reasons Not To Raise A Credit
Posted By tsauthor on February 24, 2011
Many people who take credit for goods and services have remained more or less satisfied with the financial product. But many, very many people that have entered into a loan, changed life for the worse.
About what kind of things should one think over before taking a credit, not to get into the second category of borrowers? What are the reasons to abandon the idea of borrowing money from the bank?
The first reason: the lack of reserves
It is just risky, experts say, to take the credit if you do not have free cash savings in the amount of three monthly salaries (and when the initial payment of the financed facility is not zero, the reserve should be in addition to fee). If the loan amount exceeds your annual salary, should not be credited without the presence, in addition to the advance, six months’ salary – again, for free access, not a deposit and not the reverse.
The need for reserves is simply explained: you can get into an accident, get seriously ill, lose the job and to seek for another for several months, suddenly being forced to spend large sums on the problematic situation of close friends. All this can reduce your income for some time. And in the case of loan you are financially devastated twice – first receive less pay, then the bank will impose on you big fines for overdue payments. Insurance, as the domestic realities in these cases helps little. So join the fight with the fate of the credit without reliable financial rear – hence unfit for action to fight the troops.
Besides the question of “safety net” credit has another psychological factor. Many experts do not advise to take the credit if the person has no savings for a couple of months – due to the fact that this man cannot dispose of the finances. Indeed, many people are taking a credit with the words: “I’ll never make my own accumulation, and if do, spend it on is not something unnecessarily, and with a credit I will have to pay by all means.” However, this is a disastrous path of making your own financial discipline. The right way of this will be: first to take self-education, save and accumulate money- and only when you will overcome your shopping desire and your consumer weakness, think of the credits.
It is not hard to guess that a similar principle make no sense of loans for purchase of the household goods. After all, most of them are worth less than three full average salaries. This can seem rather a difficult task, which takes a long period of time, but the financial planning and financial self-education will do you only good and will make you financially-confident.
Economic recession has made many people search for ways to save funds and saving money expert. Another part who already have some cash and would like to make more, for sure might require mutual funds investment advice. Moreover, financial planning might be of great interest to young people as they need to cope with many things in their lives, and here financial advice for young people site could help them.
Luckily we live in the world of high technologies. It wouldn’t be good not to avail oneself of this truly unique opportunity. Current Internet technologies provide us with a way to break the borders and search anything we need all over the planet. Visit different social networks, review relevant topics, join online discussions in niche forums. All this will help you be well informed about the events concerning your hobby. Also, sign up for the RSS on this blog not to miss new publications on the topic.
Comments