What to check before taking a cash loan
The cash loan offer tempts us to take advantage of it. A new car, a larger apartment, home renovation, or maybe a longer trip? There is no shortage of needs, but each financial decision should be carefully considered by us. If we want to approach the budget wisely, let’s ask ourselves five important questions before we take a loan.
I actually need cash, is this a temporary invention?
Do we really have important goals for which we want to allocate cash? This is the most important question we should ask ourselves before we even look at the loan offers. Perhaps we planned to buy a new sofa, although the old sofa still looks good. The Japanese language course is not a first need when you are not going to visit the country of cherry blossoms. If this is a temporary whim, it is better to give up your credit thoughts as soon as possible. We should only take out cash loans for specific purposes. They amount to much higher amounts than loans via the Internet, and thus – we get involved with them for longer. Sudden fancies should not rule our budget. With savings or a financial surplus, we can afford to fulfill our desires. However, when they require a loan for this – we should let go and not increase the number of Poles in debt.
I need money now, can I save it?
The second question prompts us to review our budget for savings. We don’t always have to have cash for now, even for rational needs. Sometimes we can save her. Even if we are not in the 25-44 age group, which saves the most, we can also postpone the amount that will meet our plans. If our budget allows us, we minimize daily expenses, and we collect a considerable amount for several weeks or months.
And when saving is a problem?
The biggest problem is the inability to save. Let’s think, what could we do about it? Maybe look for an additional paid job, give up some pleasures or find a better job because we were planning to look for a new job anyway? There are many solutions – let’s think about which one in our case is at stake. By adding a certain amount to your budget, we will eventually start to accumulate a penny to a penny. And if we learn to save, in the future we will take further steps and easily build a financial pillow. This is the best way to ensure a sense of security and peace of mind, even in the event of illness or other difficult life situation.
Is borrowing from a family an option?
When, after thinking about it, we conclude that we actually need money, but we are unable to save it, let’s consider a loan from loved ones. Family or friends can be the last resort, as long as they are not on their minds now paying off the cash loan. However, not everyone wants to put family relationships to the test. An unfortunate combination of events may result in us not being able to pay the full amount within the set deadline. Half a poverty, if the repayment can still wait, because our brother, brother-in-law or best friend does not need this cash. The situation becomes more difficult when they expected a refund because they have their plans that they would like to implement. Then complications arise. Therefore, sometimes it is better to maintain good family relations, and borrow from banking institutions, which, after all, were established to provide financial benefits.
Can I handle my loan repayment?
Sometimes the family is not able to provide us with financial support, and saving is also not an option, because monthly expenditure consumes a significant part of our budget. We no longer ask ourselves whether we need this loan – because here we already know the answer – but will the installments not exceed us? If we are unable to pay off the loan, it will be difficult for us to obtain additional funds in the future. Banking institutions will no longer know a reliable customer in us, which we do not want. Therefore, let’s carefully check the most important elements of the cash loan for us and decide whether the monthly costs in the form of installments will not sink our finances. The more that sound budget management is quite important to us. As shown by the results of studies carried out by Lindorff SA, 83 percent respondents believe that regular repayment of liabilities is very important. In order not to have a problem with this, you need to pay attention to the components of the loan increasing the amount of installments, and more specifically to the actual interest rate, covering all costs associated with servicing the loan and exchange rate, if we take a loan in a different currency.
Do I know how to find a cash loan offer?
The last question concerns the very search for offers. We can find cash loan offers in the same way as offers of smaller liabilities in non-bank institutions. We use payday rankings and installment loan rankings that help us decide about the right lender. Cash loan rankings are also prepared to help customers in need of a larger financial injection. Top of the list are offers that are particularly attractive because of the high amounts and the long loan period. It allows us to spread the commitment into smaller payments that are beneficial to our budget. When analyzing the ranking, it is also worth paying attention to extremely attractive offers, e.g. reducing the cost of loans or allowing you to borrow even more for even longer. It is particularly profitable when we need a really high amount because we have planned a lot of expenses.