To ask for a loan from the bank or some other financial institution, you don’t have to be a genius, but you must have two key points: how much you need and how much you can pay. Not for nothing all experts advise that you do not request more than you can return, because if you do, your budget would be in trouble.
In the process of applying for the loan, you will have to choose a term and according to it and at the interest rate that you were granted, you will get what is the monthly payment. And if you want to determine if that fee is too high for your income, consider the following points:
If it prevents you from fulfilling your monthly obligations
If, for complying with the credit, you would have to stop paying some of the basic services, your cell phone plan, etc., then it is necessary to evaluate the possibility of reducing it. It is normal that at the beginning you must cut your expenses to be able to pay the new credit but if even after you have done so, you continue to threaten your monthly expenses, then it is a bad sign.
If you demand all the money you have available
If you have leftover s / .300 and your credit quota is s / .290, you would only have s / .10 left for any emergency or unexpected expense, which would force you to borrow money again if you need it.
If you exceed your ability to pay
It is normally advised that debts do not cover more than 30% of your income, as it would threaten the rest of your expenses.
If you verify that the quota granted is very high, you have two options: Choose to increase the term of the loan or not request the loan. In both cases, you need to examine your finances thoroughly to decide.
Remember that one way to save on your loan is to compare interest rates, in order to find the most convenient one. For that you can use Mario Dellip’s personal loan comparator.