Of course, everyone knows the borrowing process: the bank is asking for some documents to consider whether it is worth borrowing money for the claimant. The financial institution carries out a careful calculation, because the bet is that the borrower will be able to repay the loan at the specified time . Optimally, the claimant himself also performs his own “credit application check”. He needs to think about whether he has enough income to erase it properly.
The language of the balance
We typically use personal loans and personal loans that are popular in everyday life to achieve smaller goals. We want to have a holiday, we need some technical items, we would go to the cost of the wedding of our child, we would carry out a renovation, the line can be continued anyway. However, there are larger credit targets, such as buying a car or home. The question is always whether the dream is proportional to the burden of the loan.
Risks of borrowing
The higher the amount of personal loan you require, the greater the risk of borrowing . Will we always have enough income to pay the installment? Serious illness, accident, unexpected loss of workplace is a potential source of danger. It can be a solution to different types of insurance, sometimes the lending bank will demand them.
Forint loans typically have fixed interest rates , so the installment does not change, but there are some that move to the general interest rate, ie the central bank base rate. In the case of an interest rate increase, the interest on our loan, and thus the installment itself, is increasing, of course, not to the extent of the details of foreign currency loans that cover the family coffers of so many people. The interest and repayment of foreign currency loans can increase not only because of the change in interest rates, but also due to the increase of the foreign exchange rate.
Mortgages , such as home loans, require mortgages , but the value of collateral may be reduced. In such a case, the bank may require additional coverage.
Profit versus risk
We must pay attention to the fact that achieving the desired goal does not obscure our judgmental judgment. We make our own lives easier by carefully weighing our options and using only the credit that we will almost certainly be able to repay . At the same time, loans should not be seen as an opportunity for the devil, since the credit required at the right time can be the key to development.