Perhaps the most common myth about loans, caused by the same financial illiteracy. You have probably heard at least once in your life a "horror story" about a person who received cash or borrowed funds on a card from a bank and subsequently was unable to pay off his debt obligations. There are several reasons why unfortunate borrowers end up in such situations:
Inadequate assessment of one's own solvency
As strange as it may sound, some people do not find time to do simple calculations and calculate their total income and then subtract their monthly expenses before going to the bank to apply for a loan. An important condition: the amount of the regular loan payment should not exceed 30-40% of the resulting figure.
Misunderstanding of the terms of the loan agreement
Another reason is that the borrower does not read the terms and uk mobile database conditions of the loan in cash or on the card carefully enough. At the same time, the interest that will be charged every month as a mandatory payment is not the only condition. No less important are the term of the loan agreement, the minimum and maximum loan amount, the presence of additional insurance. Another important factor is the type of repayment (annuity or differentiated payments).
Conclusion. Any loan is always an obligation, but it is not slavery. It is enough to carefully assess your own financial capabilities and prepare for a visit to the bank.
“The bank will definitely require me to report where I spent the money.”
Even if you apply for a non-targeted consumer loan, you will not have to keep receipts and report to the bank after receiving cash. The only thing that will worry the employees of the bank's credit department is that you make regular payments without delay in accordance with the terms of the agreement. In some cases, a bank employee may inquire about the purpose of the loan even before a decision is made on the application. But for one purpose - to offer you more favorable credit programs, if possible.