Unless you are a clairvoyant or seasoned financial analyst, it will be extremely difficult for you to predict when the next global economic crisis will come to an end. Whether to take loans during a crisis or wait depends largely on the type of loan, its need and your financial condition at the moment.
Instructions
Step 1
Consumer loans Only take consumer loans if you really cannot do without the item you intend to buy. At first glance, such loans are very convenient. They are usually unsecured. You do not have to leave an apartment or a car as collateral. The amount is relatively small, and it seems that you can pay off anyway. But interest rates on loans during the crisis are noticeably higher than at other times. And for a vacuum cleaner, sofa or fur coat you will have to overpay a considerable amount. Financial analysts advise taking your time. Better to wait until the rates go down or save up for the right thing.
Step 2
Car Loans Don't buy very expensive cars that pay more than a quarter of your monthly income. Indeed, during a crisis, the risk of losing your job is quite high. It is more profitable to buy an economy class car. After all, the competition in the automotive market is very high. And in a crisis, people try to wait with large purchases. Therefore, rates on car loans during such a period do not increase much, and sometimes even become lower.
Step 3
Mortgage loans Buy real estate if you have no problems at work and have savings in case of unexpected job loss. The fact is that during the crisis there is an increase in unemployment. Therefore, the risks of being left without permanent earnings are very high. But on the other hand, in the midst of a financial crisis, real estate usually falls in value. If you have confidence in your abilities, purchasing your own apartment on a mortgage at such a time can be a bargain.
Step 4
Credit CardsUse credit cards wisely. During the crisis, banks insistently offer to use their credit cards. But you need to remember that a rather high commission is always taken for cashing out, both in the bank's own ATMs and in third-party ones. Use credit cards only in stores or places where you can pay by bank transfer. Interest is not charged for this. In addition, most banks provide a grace period of one to two months, when the bank's money can be used without paying interest.
