Borrowing money has become an integral part of our lives. It is no wonder if the average Croat is known to spend more than he earns. Such behavior is not a matter of whim but of need, because the cost of living exceeds the income. A large number of people are therefore forced to borrow money to save their home budget. This is especially evident in emergency situations that were not foreseen in the home budget.
Borrowing money from your family changes the dynamics of the relationship
Deciding to borrow money is not an easy step. In the sea of services and financial institutions, it is not always easy to make out what suits your needs. But it is tempting to say that people prefer banks and credit houses rather than family members. They do not have to account for how they got themselves into such a situation at all or later justify what they spent the money on. Borrowing money from family and friends inevitably changes the dynamics of the relationship. Although many swear that this will not happen to them, there are only rarely cases where this is possible.
The fear that their money will not be returned or that it is spent on some luxurious things will change the relationship, and no one wants it. This is why more and more people are turning to financial institutions for borrowing money.
A good plan facilitates loan repayment
Before borrowing money, it is best to make a plan. First, you need to list your income and expenses to make it clear how much money can be spent on a monthly basis to pay off a loan, loan or loan. This is the only way to know how much money is leaking from the home budget. Most of the time, we are not even aware of this because it is about marginal things like gym memberships or library memberships that we don’t even use, card fees we rarely use, and the like. By eliminating such things, the home budget will be replenished so the same money can be diverted to repay the loan.
Borrowing Money: What is the attitude of banks and what are the credit houses?
Banks and lending companies have in their rich offerings financial products that meet everyone’s needs. When lending money, banks are much more meticulous in checking loan seekers, while lending companies are more flexible. Banks make their final decision based on the client’s creditworthiness, which relies on income, indebtedness, type of employment contract, and employer status. Credit companies pay attention only to the financial orderliness of clients, that is, it is important that the client has regular income and regularly settles his debts.
Banks are harsh to disqualify a large number of people employed on a fixed-term contract. Lending companies look at this and market loans that are characterized by smaller sums of money and a short repayment period. This kind of lending money does not pose too much risk to them, and it allows lending money to more people.