Are you in doubt about the need to make a loan or not? Amid so many financial commitments, it is easy to get lost in payments and tighten the budget.
Often, even if you cut expenses and prioritize bills, it can be difficult to stay in the blue. Ideally, look for solutions to this before it becomes a snowball. Borrowing can put your finances on track again safely and conveniently.
So in this post we will give you signs that it is time to make a loan.
You paid the minimum credit card amount last month
If you paid off only 15% of the total and the rest will be added to the next invoice plus very high interest. In this situation you are likely to accumulate more debt.
Therefore, it may be more economical to apply for a low interest loan and pay the bill in full.
An emergency expense has arisen
In addition, unforeseen and non-deferred expenses, such as a family medical emergency, can pop up and tighten the budget. First, it is important to understand if you have any other expenses that you can cut to cover the emergency.
Over 30% of your income is committed to debt
This is a sign that you have exceeded the recommended limit because you will run out of cash to use on other accounts. You can contract credit to pay off all debts at once. It is an opportunity to refinance your debt, ie get a new loan with lower interest from another institution.
Getting a loan that best fits your financial profile is quick, but don’t forget: It is important that your loan does not commit more than 20% of your monthly income!
Anyway, was this content relevant to you? Then share it with your friends!