Installments according to our capabilities

Everyone probably realizes that this is a very important issue. The credit you choose, the financial conditions and the repayment period will affect your future for the next few years – and maybe even more (it all depends on the type of the specific loan). So what to do to determine the installments that are convenient for repayment ? Here are some aspects that you must consider in this topic.

How to choose the right installment

How to choose the right installment

It is very important to first of all decide on a good, proven bank. It is therefore necessary to analyze the available offers in terms of financial terms. Particular attention should be paid to the rrso parameter, ie the actual annual interest rate. It will not hurt to opt for loan insurance – the installments will be slightly larger, but if you lose your job, illness etc. your interests will simply be more protected. The choice regarding the loan period is also important. You must definitely consider your financial options. It is very important that under no circumstances should you decide to pay too high installments. Of course, then the loan period will be smaller. This will mean that your bank will receive less of your money, and you will soon finish paying off your future debts.

Short loan period

Short loan period

That sounds like a good scenario… But what does a more brutal reality look like? It is worth knowing that a short loan period is a relatively large installment to pay off each subsequent month. It is enough that sudden unexpected expenses appear and the problem starts. Therefore, it is better to set installments that are convenient for repayment, which will not burden the monthly budget so drastically. You always have to have an emergency gate left behind. In other words, you have to have money for the so-called “black hour”…

Longer loan period

Longer loan period

You can not fail to mention that the long lending periods definitely lower the domestic budget. Of course, it has its drawbacks. People who pay off the loan for several or several dozen years are still under pressure. They know that they will have to be in contact with a specific bank for a long time… So you have to think carefully about which option in your particular case will be better. Various aspects should therefore be taken into account. Not only financial but also psychological.

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