The universal basic rule when concluding a loan is certainly that one must not go beyond one’s financial limits.
The consumer has to honestly assess whether he can also support the monthly payments for a loan. It is possible that some shopping desires can be postponed to later: This by saving money.
For purchases of greater importance, such as a vehicle, it will be difficult to escape a loan. Here too it will be necessary to ask if the moment chosen for the purchase is really judicious and necessary. In addition, the consumer has to compare loan costs: Small differences in the effective annual interest can represent a few hundred or thousands of francs.
Why opt for a loan?
- If the loan card is regularly exceeded, it may be interesting to replace it with a loan payable in monthly installments. Cash loans are mostly much more advantageous than loan card payments.
- For investments allowing you to make a profit.
- You can pay for your vehicle with a loan and get a cash discount.
- For real estate abroad: A loan is often appropriate, for retirement or as a financial investment.
- If you take a loan, you should use the money earned for the necessary things of everyday life. Beware of consumer goods or holidays: For this it is better to save the money you need rather than finance it.
Why not opt for a loan?
- Calculate if your income allows you to support the monthly lease payments over a long period. Consider a possible decrease in your salary as well as the increase in the cost of living.
If the bank refuses loan, it may be a sign that you have assessed your own financial situation too optimistically. Be careful in such a situation. Special attention will have to be paid to loan brokers or those whose
- promises you that no ZEK exam will be done.
What should you watch out for when you get a loan?
Compare prices including on-line loan in choosing a bank.
In the calculation of costs, interest is not the only decisive factor. There are additional costs that may be added. The criterion for comparing loans is the effective annual interest rate.
You may want to speculate yourself with the money you got. Even for buying stocks that guarantee you a guaranteed income you should never take out a loan. The only guarantee you have is that of having to repay your loan with interest, even if the amount invested has long since vanished by falling prices.
Before taking a loan you should always study carefully if another possibility really does not exist. Never take loan for the acquisition of an object or action whose value is deteriorating. The classic example are the holidays: Three weeks of rest, but three years to repay!