A loan is an opportunity to change a calm future for a happy present. There is nothing wrong with the very idea of borrowing money. There are circumstances when getting a loan helps to realize an old dream or can give us a few happy days. And this is a lot. So, if, in spite of all doubts and arguments of common sense, you nevertheless decided to become a debtor, then it will not hurt to deal with the main intricacies of credit arithmetic and law.
Algorithm of actions
1. Choosing a bank, do not be too lazy to surf the Internet in search of independent opinions of former or current debtors about certain banks. On the Web, you can easily find several serious resources that collect private reviews about all the leading lending banks.
2. Having selected several banks that seem to be suitable for you, call each one and find out the following.
- What is the real interest on the loan you will eventually have to pay, taking into account the amount that you are going to take (or the bank is ready to provide you). Almost all banks use hidden payments, which the borrower sometimes finds out about during the repayment process. Ask a bank specialist for information on all possible payments for your loan, taking into account all fees. Remember: the final interest rate is often very different from the stated rate.
- The maximum and minimum maturity and all other features of your case (whether guarantors are needed and if a collateral is needed, what kind of property will the bank accept from you in this capacity).
- Find out what one-time prepayments you have to make and the additional costs you will incur. Namely: fees for the provision and maintenance of a loan, the cost of completing the transaction and insurance of your life, which is often mandatory, which you can find out about after the conclusion of the contract or even with the first installment.
- Ask a specialist to explain everything in a language you understand. Ask simple questions: “How much will I have to pay before receiving a loan?”, “Is there a loan repayment schedule attached to the agreement? "; “What month and what date will be the deadline for the first installment, what is this amount and can I pay it earlier / later without penalties?”; "How much money will I eventually (in total) have to pay to the bank, taking into account the interest rate?"
- Specify, the interest rate is charged on the balance of your debt or on the entire loan amount.
- Ask which method of calculating interest is used - annuity (rent), when your contributions are made in equal installments, or differentiated (commercial), when your payments decrease with each subsequent time.
- Ask if there is a fee for servicing the loan, which can be charged monthly and calculated both for the balance of the debt and for the entire loan amount.
- It is important to find out what the percentage of penalties for delayed loan repayment is. Usually, the percentage is charged from the first day of delay and can increase every day; penalties can be imposed in the form of penalties or even rate revisions.
- You should also find out what percentage is charged for early repayment of the loan (if there is such a penalty). It also happens that it is simply unprofitable to repay the loan ahead of schedule.
3. Remember that credit cards give banks even more room to manipulate. It is almost impossible to calculate the real effective bet on the cards in advance. Therefore, it is preferable to take cash.
If you nevertheless decide to take a credit card, specify what percentage of penalties is charged for exceeding the overdraft limit (overspending) and whether there are fees for withdrawing a loan from an ATM (someone else's or the same bank) in cash.
4. When the choice is made, carefully study the contract template in advance. Pay special attention to the footnotes. Make sure that everything said to you in words is confirmed in an official document.
5. Try to keep track of the deadlines for paying your regular installments. In the hustle and bustle of business, we often postpone payment until later, and on the last day we either forget or, as luck would have it, we cannot break into the bank. The deadline for payment has the peculiarity of turning into an unpleasant surprise. To prevent this from happening, it is better to leave a small gap and pay in advance, at least a few days in advance. Otherwise, you will have to overpay - banks, as a rule, from the very first day, are severely fined for being late. Plus, you run the risk of getting bad credit.
6. Upon termination of relations with the bank, ask for an official paper with a seal and signature on the absence of claims on its part. It should be clear from the text that you don’t owe the bank anything else.
Unfortunately, it happens that the debtor has underpaid a ridiculous amount, the presence of which the bank does not immediately report, but when considerable fines and interest have already been charged on them.
7. When you finally free yourself from the burden of debt, get ready for a flurry of SMS from the bank with offers of new tempting loans. The temptation is great, because you already know the sweet taste of "easy" and fast money. Don't fall for provocations. There was an urgent need and other people's money helped you out, but is it worth harnessing new obligations?
Think carefully whether you really cannot manage with your own funds or the help of loved ones, because you can quickly take someone else's, and you will have to give your own for a long time!
