The loan is a convenient and often very necessary thing. For example, not everyone is able to save money for a new house or a car. People tend to waste money on different unnecessary and stupid things. Therefore, a loan is a good option in order not to postpone the purchase. But before you take on any additional financial obligations, you should think very carefully and weigh it. Moreover, if the purchase is quite expensive do not hesitate to consult with a lawyer.
Here are 3 rules that will help you take a loan right.
Rule number 1 – COLD CALCULATION
In professional trade, the term “emotional buying” is well known. Shops do their best to make their visitors under the influence of emotions and euphoria to buy more and more. Did not you have a situation when you went to the store just to look at the prices for anything and ended up with an unplanned purchase? And then this thing was gathering dust in your house on the shelf because of uselessness. What prompted you to buy it?! It was just a result of emotions and good marketing campaign.
Remember, any serious waste from your own, or from someone else’s pocket – should not be a momentary decision. If you really want to buy something, come back home and try to delay the purchase until the next day. Maybe tomorrow this purchase will seem to you completely unnecessary.
Rule number 2 – CREDIT FOR EMERGENCY NEEDS
Such a phrase can often be found in a bank as the name of a banking product. We will allocate this as a rule, that the loan should be taken on something that is extremely necessary for you, an urgent one, and not a new “toy” like a miracle cleaner, just because you friend has got the same. So, maybe it would be better to consider truck loans, for example, because a truck might help you to open your own business. Therefore, before you take out a loan for any purpose always think about whether it is worth buying. Is it necessary for you now and is it worth taking on long-term financial obligations for it?
Rule number 3 – PAYMENTS ON CREDITS SHOULD NOT EXCEED ½ YOUR MONTHLY INCOME
Some economists may not agree with this simplistic approach to assessing credit load. But our goal is to bring the most simplified option, understandable to everyone, especially as many retail banks use this rating before issuing a loan.
For example, average truck costs from 70000 to 150 000 dollars. Your monthly salary would be 10 000 dollars so there can be different types of loans for truckers. So if you would like to pay a half of your salary it will require repaying a loan from 14 to 28 months. However, banks and some financial companies propose various convenient offers for clients.