Credit is colloquially speaking borrowing money from a bank or non-bank institution. It should be remembered that these institutions do not do it charity. Banks and non-bank institutions sell money for money. Taking a loan, we ‘re really buying money. Buying PLN 1000, however, we do not give the same amount, but more. We must pay not only a percentage of the loan, but also for its service to the institution from which we buy money.
Often people who fall into debt do not have one big loan on their account, eg for a house or flat. Everything starts innocently from one small loan . It turns out that in an instant we can have things for which we would have to work for many months. That is why it is so appealing. In addition, we did not put in any effort or work. If we once succeeded, why not try again. Thanks to the fact that we easily meet our next cravings, we start to addicted to it. However, if two installments were not a problem, it may soon turn out that the next ones are too heavy for us. So what to do to avoid falling into the band of credits.
WHEN CREDIT IS NOT NECESSARY
Before taking any credit, you should consider whether the item you want to buy is really needed. A large amount of shopping is the desire to have new and better things, just because we want to have them. In cases when it turns out that these are only our dreams, and do not need to, start by thinking about how you can get money in a different way so that you do not take credit . if the loan is not high, there are many other options. Maybe, for example, you should abstain from buying and save money to buy a new computer. If we care about the time, let’s think about whether we do not have unnecessary things and equipment at home that are waiting to be removed. It’s a good time to try and sell it. We can also look for an additional source of income, if only for the time when we will not be able to raise funds for a new computer. We can also try overtime at work. So you see that there are many possibilities. All you need to do is look for it. However, if you still want to take a loan, the next step must be to analyze your finances. First of all, you must know if you will be able to pay the loan installments. If it’s all right, if you should not have a red light on you, you simply can not afford it.
In addition to credit, many stores also offer the option to purchase items in installments. These are 0% installments, i.e. we only pay the cost of the purchased item. However, the hook is all kinds of extras such as loan insurance. When shopping for a few thousand, you certainly do not have to insure the loan . Often, shops inform that such insurance is required or does not mention that you can give up from it and add it to the invoice. So, before going to this type of purchase, it is worth getting acquainted not only with new technological innovations, but also with your cost possibilities.
It’s not so difficult to take a loan . Problems begin only when we have to start paying it back. Even more, the problem is when we do not have to pay for subsequent loan installments. So always analyze whether we need it. If so, will our finances allow us to pay monthly installments. Before going for another loan, it is also worth paying back the previous one first. Only in this way will we not get into debts that we will not be able to pay back.