There are erroneous beliefs and misinformation regarding credits. There are people who flee from them as if they were a curse and many others who become debtors of any store and bank in the market. The truth is that when we know how to use the credits, the benefits they bring to our professional and personal life are invaluable. Knowing when to turn to a credit or not, makes the difference between continuing a life on the rise or getting into an endless maze of problems.
If we understand credit as a resource that can be available to us through financial institutions and that it is borrowed money that has to be paid, one of the main slogans is to define what I want the credit for and if I have the economic capacity to pay it. This is very important and the ideal answer must contain two fundamental factors: It will help me grow and I will be able to pay for it in the shortest time possible without a problem . It is ideal to ask for a loan if it will help boost your business and add value. For example, you need to make a significant investment in new computer equipment, or acquire a flotilla of vans to reach more distant areas with deliveries, improve or expand the premises or acquire new merchandise to sell in the short or medium term and achieve a positive return on investment
In the personal field, the credits must also offer a tangible benefit to our quality of life
Expand the house or fix it so that its value increases if you need to sell it in the future. Do a master’s degree, doctorate or any update that boost your work life. Improve the domain level of
Some language that offers you a possibility of promotion. Acquire a car to become a member of companies like Uber, move faster to serve more customers, and thus raise your sales goals and your income.
Once the objective of your credit is defined, take into account the time you require to cover it. Although credit institutions can offer terms of six months up to 20 years, depending on the type of credit you request, it is better to operate with a mind totalera. In the case of credit cards (which have high interest rates) the Condusef recommends paying the total of purchases and charges generated in the same period of your billing. In other consumer loans, choose the term according to your monthly payment capacity – the shorter the monthly payment and the lower the total cost of the credit. In general it is advisable to pay the credits in the shortest possible time, but it is not advisable to put yourself in very tight situations that could jeopardize your compliance with the monthly payment. Remember that your credit behavior can offer you greater benefits if you are fulfilled.
Do not put good money to bad
The money that the banks lend you should use it to grow
Not to cover your personal whims, because then it could become a problem, both in your cash flow and in your financial history.
Definitely DO NOT apply for a credit if you do not have money left over every month or you already have too much debt. A good way to think about this is the “debt service ratio” – which results from dividing the amount you pay monthly to the banks for all your debts, between your monthly income. As a rule, try that this never exceeds a third (that is, that your payments never exceed a third of what you earn). Also do not put the rope around your neck if you think that in the future your income will not allow you to cover the monthly payment, for example, if your company has personnel cuts and you think that your position could be at risk and you do not have enough savings in case of losing your job.
“It is only advisable to acquire a loan to pay another one when the interest rate of the new credit is clearly lower than the one you are going to pay”
It is only advisable to acquire a loan to pay another one – also called debt consolidation – when the interest rate of the new credit is clearly lower than the one you are going to pay and as a result you will reduce your interest burden. When you can, try to pay the fixed fee and a little more to capital to reduce the debt.
Do not buy a loan to buy something that you could get through your savings
If you really want to travel so much because there is also a super promotion that will last a short time, or something unusual as the Beatles met again and you can not miss the opportunity to see them sing “All you need is love” last Once, then resort to credit, but, make sure you can pay without compromising your basic monthly expenses.
Responsibility and commitment are keywords to achieve good management of your credit. If you think that you are ready to acquire a personal loan that will help you grow, when you read this article, then go to a lender to support you on the way.