At the same time, he is a potential watershed in his finances, as he can allow the dream of home ownership, the advancement of his professional career or the end of the dirty name in the square and a new era of consumption.
This is why it is important that before taking out a loan you answer the following questions to find out if there is a need to take this step and if it is the most recommended.
Your finances no longer include sacrifices?
When talking about loans or credit, it is normal to talk about the value of money. It may seem a bit odd to talk about “expensive money” or “cheap or easy money,” but that is exactly what happens. When loans are made quickly, with interest and a low CET, it is cheap to pay back.
When it is the opposite, it is necessary to think carefully before choosing this route, because the payment will be complicated and expensive. So plan and think about whether your finances can no longer support cuts. That monthly fee for an app or service that you don’t even use anymore … a small cut when buying clothes or food. Or maybe there is the possibility of making extra money. These are options that can breathe in the accounts.
Will you be able to pay the installments?
It is common to get excited about the loan and put a little higher amount, as the installments don’t seem to be so problematic. But remember that they last and their purchasing and financial power will be reduced the hour they need to be paid. Especially if the loan is payable.
Think carefully about the conditions before saying yes and signing the paper. Even more so if the repayment period is long, because arrears can result in fines and requests for a second loan are not always easily accepted.
Can I give any guarantee?
Guarantees are a positive factor because they lower the risk of the financial company, which sees its profile with better eyes and can ease the process or charge lower interest rates. So if you have something to guarantee, such as a car, for example, it is better.
It may seem obvious, but it never hurts to reaffirm: never enter into a loan thinking about losing that guarantee. So if you’re afraid of not having this possession after all, it’s best to go back to the first question and think of other possibilities perhaps.
Is the loan a bridge to the future?
This is the best scenario to apply for a bank loan. Using loan money to take a course, develop a business idea or buy something that will bring money is extremely positive and can be seen as an investment rather than a wallet burden. Since the total price can be very high, a loan can help with this and split the payment into installments.
So if the answer to the question is yes, study well the loans that are offered in the market, set up a plan to be profitable in the medium term and move on!
Will the loan serve to settle your finances?
This is also a possibility. A lower interest loan may be easier to pay than fines and charges on a debt and replacing one with the other can be a good deal.
So if you have a high interest and CET debt, whether it’s from your credit card, overdraft or otherwise, consider applying for a loan, repaying the debt in cash – if you get a discount, even better – and then repaying the debt. installments of the agreement.
No risk of setbacks?
Of course, it is difficult to plan your life in detail, even if it only involves finances. But when you get a loan, there’s no way: the commitment goes with you wherever you go.
So try to think about what your near future will look like as you pay back the installments. If there will be more spending, if it is possible a promotion with salary increase at work, if the house bills can be better divided. Thinking more broadly, all the anxiety of this moment will be gone. You will make a well thought out and well-founded decision.
What should I do when looking for a bank loan?
This may be a time of anxiety and stress, but understand that this is a step that many Brazilians go through – the debt level is over 60 percent – and there are solutions to that. Keeping a cool head and making good decisions makes all the difference. The first is not to jump on the first boat that passes by. Search the internet even in financials and find out the best conditions. It is possible to have a finger on them, not only in the amount, but also in how many months to pay and until when will be the first payment.
As there is a huge supply of financials, options will not be missing and using a comparator can be of great help. Look out for the interest rate but especially the Total Effective Cost (CET) to really know how much credit will weigh in your pocket and who is offering the best service. And lastly, keep in mind that the loan can be repaid at one time or several installments at one stroke, including generating great deals for both sides. Therefore, consider this when taking out a loan and if the possibility arises to repay the amount in one go throughout the process, have no doubt: negotiate and resolve the issue!
It is never good to leave debt and the loan process does not necessarily have to be traumatic. If you really need to apply for a bank loan, think carefully about the scenario, plan to use the money and pay according to your means and schedule. There is no secret.