4 notes when borrowing money from a bank that you need to avoid
In daily life, it will be difficult to avoid financial needs to solve problems that occur. Therefore, Bank loan neither bad nor worrisome and any of us can face this problem.
Therefore, it is never superfluous to equip yourself with the necessary knowledge related to bank loans.
Every time you sign a contract, especially money-related, read it carefully.
Here are 4 things you need to know before taking a bank loan to minimize possible mistakes:
1. The loan cannot be estimated accurately
Everyone is afraid of a lot of debt and thinks that they will only need to borrow a little, but if you borrow too little, you will lack money and do not have enough budget for your projects. Meanwhile, borrowing more than necessary causes you to incur additional unnecessary interest rates or spend money too much, or invest in items that are not in the plan in an uncontrolled way.
Therefore, when you have not determined the exact number you need, do not rush to apply for a loan. Try to plan as clearly as possible to calculate costs, so you can limit the risks from bank loans.
2. Extend the repayment period
Looking at the monthly payment numbers when extending the loan period will make you feel that getting a bank loan becomes a lot easier, but in fact, this is a mistake that costs you a lot of money. later – especially with small loans.
That’s not to mention the bank’s lending interest rate has the right to increase year by year, the longer you borrow, the more you will lose, easily leading to a loss of control in finances and personal spending.
The ideal number recommended by experts is still: the amount of debt repayment accounts for no more than 30-40% of the total monthly income.
Take a close look at your financial condition before making a final decision. Otherwise, you could very well fall into the situation of taking out a new loan to pay off the old one. Conversely, you should also not borrow for longer than necessary to avoid debt pressure and increased interest.
With the development of bank loan packages, it is easy to choose a loan form that suits your needs and personal finances. But either way, be very careful.
3. Love low interest rates
Everything has two sides to it, and so does a bank loan.
Low or high interest rates both have their own problems. In some banks, low interest rates are always attached with many conditions and are not necessarily safe. However, it is only an incentive in the first period and when the term expires, the interest rate will be “floating”, changing depending on the amplitude and regulations of each bank.
This is also the point that people need to pay attention to the most, but it doesn’t seem to be “notice” or pay much attention.
The best advice for you is still to actively seek information, consider the preferential period of the loan package and the interest margin afterwards. This information you can find out for yourself or ask the bank’s advisor to know how to calculate and understand the interest rate after each adjustment period.
After getting this result, then calculate and make a decision for yourself. Do not rush to see the low interest rate and sign the loan terms!
4. Settlement at the wrong time
When taking a loan from a bank, everyone wants to quickly pay off all loans and you will always receive the statement “can be paid off before the due date – whenever you want” from the consultants. pellets. However, not everyone will tell you how to do this properly.
Usually, the penalty that banks offer for early repayment is 4-5% of the total outstanding balance. At some times, this fee plus the principal balance may be much higher than paying monthly. Not to mention, it also leads to some legal contract troubles if not careful from the beginning.
To minimize the loss of money due to premature settlement, please note all fees for this before signing a contract with the bank.
at Blogtuan.info – Source: Afamily.vn – Read the original article here
