One of the most common problems identified is that consumers buy multiple loans without considering previous credit or payment options.
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Acquire a financing It can be useful in different phases of life because in certain cases it allows us to deal with important events such as starting a business, acquiring a good, applying for a university loan and covering hospital costs.
One of the most common problems is when consumers buy multiple loans without considering them Indebtedness previous or his Payment optionsand direct their debts to a phase of over-indebtedness that currently exceeds their economic possibilities.
Debt as such implies a number of payment obligations that the person can meet depending on income, savings and consumption options. Overindebtedness, on the other hand, is a warning that occurs when income and wealth do not allow you to respond to all the debt you have acquired, thereby putting personal, family, or business assets at risk.
Practical finance next from Visa Share the basic tips to avoid over-indebtedness:
- Note that every loan or loan applied for must be paid.
- Before applying for a new loan or increasing the use of the available credit, the current debt should be analyzed so as not to get out of control. A warning sign that you are on the verge of over-indebtedness is when the person is frustrated with their payments, does not answer calls from creditors and receives notifications of overdue bills.
- Define consumption priorities and reduce costs to avoid impulse purchases. This is the most important part to save money as soon as possible and to cover the current debts.
- Organize and establish a payment term to cover the debt. In this step, it is important to contact the creditor institution or the company and agree on a payment plan.
- Count the net income and fixed costs. This sets the budget available to cover the debt.
- Distinguish between needs and desires, ie try to distinguish before you buy whether you do it because you need it or to satisfy a wish.
- Analyze offers: Although the discount is substantial and the price seems very attractive, an unnecessary purchase can be a useless expense that can affect your economy. Try to make a list of the things you want and need so that the next time you see a surprise offer, you can analyze whether the item in question benefits you in any way.
- When you need to take out a loan, it is important to find out about the current terms or the potential loan, and thus better understand the obligations and costs that are required.
- It is important to know how to use a loan and to be aware that its use must have a goal and that it must be paid at a certain time.
- Before committing a loan, it should be checked whether it is actually possible to cover the payments in the specified times taking into account punctuality and to avoid generating more interest than agreed.