Anticipating your questions: this is how I have repaid my loan in my life. Probably four years ago my laptop broke down (quite unexpectedly, he was only 5 years old: P), my basic work tool, and every day I had to buy new equipment.
I was fresh after university, I didn’t have any savings – a situation near the gate. I thought so then … Then it turned out that my grandmother could lend me the money. This business of life cost me an additional USD 500.
When taking a loan is the only way out
However, I know that there are situations when taking a loan is the only way out: someone breaks the washing machine or fridge and there are no savings or someone who can borrow on interest-free installments. Yes, there are situations when taking a loan is a good decision.
However, if I read that 35 percent. society is considering taking credit for holidays and gifts, I will not say what I think about it as a courtesy. If for 12 months you didn’t manage to put aside a zloty for this purpose, will you be able to repay the loan for another 12?
Maybe just instead of gifts for USD 200, get yourself a gift for USD 20? Once and for all, change the “pawn and put yourself” principle to “I don’t have, I don’t buy” and make credit decisions wisely.
There is no urgent need, no credit
From my own experience (buying a laptop in installments) I know that we can regret it too quickly and ill-considered.
For 12 months, when I repaid installments for my equipment, I was stressed if I could dress the amount I needed on time, whether I would not forget or be late with the transfer … I felt very bad about it, so to develop self-restraint.
When making credit decisions, I wrote myself a set of questions that I always ask myself when I think I should take a loan. Here they are:
1. Is this money really necessary for me?
Necessity or whim? Admit that sometimes you think about buying a new phone for credit, although the one you have is doing very well. I also sometimes have such ideas, but I deal with them quickly and I advise you as well. If that’s why you’re going to the bank’s website now, then it’s better to shut down your computer quickly and go for a walk. Fresh air will do you good …
2. Maybe I can take an interest-free loan from a loved one?
Think about whether someone close can not give you the amount you need. I did not use this option when buying a laptop, and it cost me an additional USD 500. Needless to say, it would have been a lot of money for me, if it wasn’t so, I would have bought a laptop for cash. I don’t make that mistake anymore.
3. Will I be able to repay this loan?
The urgency is urgent, and none of your relatives can lend you money – this is a sub-gate situation. Remember, however, that even the most favorable loan will not solve your problem, if you are unable to pay back the installments incurred and you have to pay back at least 120 percent. what you borrowed. The bank will ask for money.
4. Maybe I can postpone the purchase and collect the money myself?
Maybe you can postpone your purchase and collect the amount you need? You have nothing to save from?
Maybe it’s time to reduce your expenses a bit, think about changing jobs or additional earnings? If anyone ever asked me such questions, I would have gilded him.
Credit Decision Tree
The above questions are credit must-have. To make it easier for you to make a wise and thought-out credit decision, I have prepared for you aboard with a credit decision tree.
You will find these questions there. I always use it when I think that I want to take a loan and I encourage you to do so. It’s best to print it and hang it in a visible place, e.g. on a corkboard or fridge.
However, if you have already reached the last question on my board, then probably taking a loan is the only right solution for you.
Just remember to carefully compare offers (comparison websites will be helpful), and then read the contract carefully before signing. If you have any doubts, ask a bank adviser or write to me. Good luck!