As its name implies, flexible credit is flexible, as it can be raised and increased according to your life situation, and your repayment has also been made flexible: when the financial situation permits, you can pay off your credit at once.
Borrowing money has never been easier than it is today. There are plenty of providers who all promise you quick money here and now. But even though it’s easy to borrow, it doesn’t mean you just have to take the first, best loan available. For a loan is a serious decision that will affect your personal finances for perhaps a long time in the future. So take your time to think about and follow the 5 good loan advice you will get in this ebook. You can visit https://slickcashloan.com/short-term-loans.php makes things perfect now.
Can you afford to borrow?
When assessing whether to take out a loan, the first thing to consider is whether you can afford to borrow at all. The loan must be repaid-with interest and fees. Admittedly, this is in the form of smaller amounts payable each month during the loan term. But even though the monthly installment is not very large, you still need to have air in your personal finances in order to repay the money. So the very first thing you need to do is actually set a budget so you can get an overview of your finances.
What is a Budget?
In the budget, you list your fixed income (salary and any government grants) and your fixed expenses (rent, car loan, daycare and so on) for each month. Also, remember to include installments for any other quick and consumer loans in the monthly expenses. Eventually, you subtract the sum of the expenses from the sum of the revenue. In doing so, you find out how much money you have – in principle – available to live for each month.
Remember your cost of living
From this amount, you must deduct a fixed amount for food, spending money, gifts and whatever such a month otherwise just offers of expenses. How big this amount should be can find out by looking at how much you’ve spent on these items over the past three months and then taking an average.
Additions to contingencies
You may also want to spend an amount each month for unforeseen expenses. It is usually the type of expenses that people end up taking out loans because they have not saved up for them. For the washing machine, the dishwasher and the fridge stop working sooner or later – and then it is always nice that at least not all the money you have to go out and run up the loan market.
You have so much money to pay off each month
Only when you deduct the cost of living and the amount that you set aside for unforeseen expenses do you have the amount that you actually have available each month. It is out of this amount that you have to take the installment you have to pay off on your loan. Monthly income – Fixed expenses – Cost of living – Provision for unforeseen expenses = Your maximum available loan repayment amount In other words, the maximum amount your monthly repayment can be.
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