We will start with the fact that the authors of this article are not experts and not offering anything. We do not represent a credit institution.
Lending is one of the most popular and old methods to making money. Since antiquity, the Phoenicians as good retailers have realized the benefits of trading on credit. Then these techniques for making profits are developed by the ancient Greeks and so to the present day.
Taking a loan is an issue in every family. Sooner or later the way leads to need for fresh money. This happens most easily by taking a fast loan.
Upon withdrawing of any type of credit there is important moments that need to pay attention. Special attention should be given on the accompanying minuses when we towing a fast loan.
The fast loans are usually up to several thousand. A major minus is the high interest rate. This rate exceeds several times interest rates on credit granted by a banking institution. Should be carefully choosen the place of which will take credit. Also, you should carefully review the loan agreement. Our advice is to do this after consultation with legal entity. Very often in lowercase letters are fine print hidden the pitfalls. Higher interest rates may not be seem in the beginning, but if you make a simple calculation you will see that very often is double return of money to those who have taken loan. Penalty fees for overdue loan are also very important factor. No one suggests that will have to pay them, but if that happens they are that large that at one point the debtor only pays interest rates and principal remains the same. Very common are cases in which the loan is defaulted in time and it is accompanied by large losses of money just because of delayed payments. This situation is detrimental to every budget. Should be added and legal framework, which is always on the side of creditor. Debtor always suffers when it comes to legal settlement of the financial problem situation.
Our advice is to consult qualitatively and carefully evaluate the risks to which you may be subjected.
First we need to start that our Articles are not expert opinion and not intended to encourage you or discourage you in the matter of taking of credit. Furthermore, the situation with taking credits is multifactorial and depends on many variables. The functions that will implement fresh money once you obtain them are fundamental importance. First you have to answer this question: Do I really need this loan?
Taking a loan is becoming increasingly popular these days. People can take a loan for almost anything. From purchase of household appliances and equipment, the purchase of various types of machinery and cars through to buying of real estates. Even to enter in store to buy a mobile phone you will be offered for an opportunity for deferred payment, which is a type of loan. Entry into Mall or if you want to stop for shopping in groceries with a credit card can be assigned to the type of lending. Interest rates for credit cards usually start from 10-15% and go up.
What must be taken into consideration when the loan will be drawn? So as not weighs relentlessly on family budget should not take credit just because we lack money to buy a particular product. When the amount is small it is not a problem. However, when the amount exceeds the annual income of a family, things can become very complicated. Entering in a debt spiral is a problem not only of the families in the modern world, even large corporations and even entire countries. It is very important to calculate the average earnings over the past period. So most easy to assess remains the free money you have to repay the installments. It is important to note that after crossing the grace period /if you have any, agreed/ starting repayment and things are changed. Matter of personal choice is whether to have free money or get what we need immediately and then monthly to be bound by payments.
At the beginning of this article is important to mention that the author is not biased and does not want to encourage you to take a loan. Shown Below mentioned are advantages and disadvantages in taking credit.
At a certain stage in the life of each family or single person comes time which requires taking credit. There are of course variations that do not require that. For example, if you are English lord and you are not keen on gambling you will probably never need to draw loans.
No matter whether it is a large mortgage or a small loan needed to purchase household appliance must make a serious estimate of the amount needed and how to repay the amount withdrawn.
We will start with the advantages of fast loans.
The fast loans are really such. It can literally take less than 24 hours from the first action and step for taking credit to the finalization of the transaction and receiving money you need. Speed is a major advantage for loans. In quick loans you do not have to waste time for supplying bunch of documents proving that you are able to handle the repayments. Furthermore, you do not lose time and of an employee to review your documents which rather facilitate the procedure and reduces the fees for examination of your application. Taking into account vast and cumbersome process of obtaining credit in most banks this advantage appears to be quite important for people who do not have time. This is related under small amounts as an opportunity for credit. Usually fast loans do not exceed several monthly or yearly salaries and repayment terms are from two to eighteen months. When applying for fast credit you do not need to explain what your job is and how you will pay after.
In conclusion we shall mention that the quick credit have many minuses which at some point may outweigh detrimental to the family budget. These negative possible consequences should be known before proceeding for credit.