Personal loans, although you can make them serve many things, are often called that because the lender usually has only as a guarantee of recovery of the borrowed money, the present and future assets of the debtor and not a special guarantee.
In general, you do not need many requirements to access them, so you have to be aware of the consequences, and how to deal with the expense once the money is pocketed.
When analyzing how to choose the best cash loan, you have to take into account some aspects that will guide you to the best option.
There are some basic rules that you have to know, and some tips you could follow so that taking out a cash loan does not become a dead end:
Analyze your initial situation
Do you really need to ask for a loan? Can you afford the expenses? Calculate how much money you spend each month, and the income you have. Analyze which expenses are mandatory and which are optional.
Calculate the contingency margin
Once you know how much money you spend, you will know how much money you have left for contingencies and small luxuries that you want to give yourself.
In this margin Good Finance, you must include the amount of the monthly loan installment that you request.
What kind of work do you have?
If your work is volatile and you have no linear monthly income, then you have to redouble the precautions before requesting a cash loan.
If for example you are autonomous or FreeLancer , there will be months that you will invoice more than others, so it is recommended that you apply for the loan with a fee as low as possible, and save those months in which you have more income.
If your work is on a tightrope it is not advisable to apply for a loan whose repayment term is short term, to minimize risks in case of possible unemployment.
Do not apply for a loan to pay another loan
This situation can involve you in a vicious circle, and it would be very difficult to leave. In any case, contact the initial lender and, if possible, request the extension of the loan repayment term.
Always read the Terms and Conditions
Make sure there is no extra charge. Contact the entity if necessary, and request all the information in writing.
Make the return according to your income
While it is true that the earlier you return the loan money, the less interest you will pay, but do not put a short repayment term just because it is cheaper. It is better to return it to a longer term, than to do it in the short term and have economic difficulties.
Compare the interests and commissions of each lender
Obviously nobody wants to pay more than necessary. Most of the entities that offer their services through the Internet, have a loan simulator to calculate these concepts before requesting the necessary amount.
Know the cost for early cancellation
If the loan contemplates the possibility of an early, partial or total cancellation, it is convenient to know what its cost is.
Request the most appropriate loan to your requirements. It is very important to find a loan that suits your circumstances. There are entities whose interest may be a little higher than the rest, but on the other hand they offer other advantages or flexibility that other lenders do not have.
Once you have traveled through all these concepts and analyzed each point in particular, you can calmly enter into a personal loan.
Get rid of myths and prejudices, and allow access to these facilities offered by the market, with more and more lenders. The important thing is to do a thorough analysis so as not to run into any unforeseen midway.