As we progress along the path of our lives, we will sooner or later come into contact with various types of credit. In our childhood, we are taught that credit is not a good thing and it is not good to owe. Of course, as with many other social expectations, there are reasons to do so, but with an adult in mind, it is worth thinking about and exploring. Credit is not at all a devil’s thing if we do it wisely. Let’s do it!

When should we borrow?

Let’s start with a home purchase project. When do we want our own real estate? Most often, the answer is “immediately” or “yesterday”. ? For some reason, we Hungarians still find it more important to get their own home / home than say in Western Europe or the United States. Of course there is nothing wrong with this, but here too, let us try not to get borrowing too quickly. It is good to be prepared for such a long-term commitment.

One interesting point would be to support this statement:

About 5 years ago, mortgage rates were above 11%, whereas by the end of last year (2017) these rates were only around 5%. Who wants to pay interest twice then voluntarily? No one.

Of course, if you need a payday loan right away, there is nothing you need to do, you have to take it, but here too, it is worthwhile to be smart and choose a small interest period, because we do not know in advance when the interest rates on payday loans will change.

What to look for before borrowing?

What to look for before borrowing?

First of all, we did not see an example “payday loan seekers” failed the real estate because they still did not get the payday loan. Usually there is a problem with justifiable income. This is not good for those who would buy it, but for sellers it is a waste of time … That’s why we recommend everyone to do a “pre-qualification”. In practice, this means nothing more than going into the bank and completing the procedure for borrowing without having the property you choose or want to buy.

Why is it worth it to us? Because we know exactly how much credit we can expect based on our income and what kind of real estate we are thinking about. Simply put, we know how long the blanket is worth, saving you time and energy.

No need to “stay” in a more expensive payday loan!

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The revision of existing interest rates is also of great importance now. This is due to the current extremely low interest rate environment (2-3% APR) mentioned earlier. Just think that with an average 20-year, $ 8 million payday loan, the 11% interest will give you about $ 80,000 in installments, while a 15-year, $ 8 million monthly repayment is now available for $ 52-53,000. Count on it with our calculator! This could mean an extra $ 5,000 a year, or more money in your pocket.

Tip: Spend most of your saved money on savings! By collecting on an LTP or TBSZ account , you can earn a nice amount that you can then invest in the payday loan. Or, if we want to, of course we can turn it around, but try to stay financially aware!

Let’s seize the opportunities!

It is already clear from this short article how much difference can be made between a payday loan or a borrowing. As we have described, it is no problem that if you are borrowing in a high interest rate environment, then you just have to keep an eye out. Let’s switch as soon as possible, but of course, look closely.

We are also very happy to help you with your business. Plus, we do it for free, it won’t cost you any forints, and your credit won’t be more expensive. Read us regularly, as we will come up with a number of similar good ideas and updates to keep you from borrowing and the next few years!  

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