How to borrow money in order not to drown in debt

Unpaid debts reduced mood and make life difficult. Moreover, as shown by a systematic scientific reviewThe relationship between personal unsecured debt and mental and physical health: A systematic review and meta-analysis. 2013, debt can cause depression and worsen the health seriously.

Fortunately, this can be avoided by caution and abide by a few rules.

1. Assess the risks

Before you take on debt, imagine what it can for you to end up in the worst case.

If you want to borrow money from a friend, think about what happens if you can not pay him back. Personal Finance - This is a restricted area, which should not touch the friendship. As a joint business, debts ruined many relationships.

If you plan to take credit for a large sum, think about whether you hold firmly to the workplace, do you have a financial safety cushion. The fear of dismissal if there is a lot of credit and absence of reserve capital has grown significantly and can bring you to burn.

Also imagine, from what you have to give up: the annual journey, expensive gifts to friends, your favorite entertainment. And that debt does not make you give up not only from the usual, but also on the basic necessities, think how much you can afford.

2. Calculate how much money you can take

Take the most necessary expenses for the month: rent, food, transportation, the cost of the child. Subtract the resulting amount of his salary, and all that is left, divide into two - roughly the monthly payment on the loan you will be able to master without any restrictions. Usually it is about 20-30% of salary.

If you take a loan "back to back", any unexpected situation, whether it is a disease breaking anything in the apartment or the need to buy new things, will knock you off track and leave without money.

Therefore it is better to choose a monthly payment in the amount of about 20% of salary, even if it means increasing the payment period. In the case of increasing the income you will be able to repay the debt ahead of schedule (of course, if the terms of your loan agreement).

If you want to completely comfortable mode of payment, if possible take a loan a small amount in the long term. You overpay on the loan, but they minimize their risks.

3. Make sure that you really need a debt

Before submitting an application to the bank and borrow from each other, make sure you do without a loan is impossible. Maybe you'll have to save up the necessary sum, giving up some entertainment or bad habits?

Also, think about additional sources of income. Moonlighting in his spare time, will accumulate until the desired item. Such an approach will not only help you avoid the loan, but also show whether you really need this purchase.

Since you did not earn credit money, they are much easier to spend on something unnecessary.

When you moonlighting, donating their vacation, or deny yourself the usual entertainment, you start to appreciate money.

You may even give up the desired things, realizing that it is not so necessary.

If you just can not do without the purchase, and save for it is unprofitable - in time it will rise in value or lose relevance - learn all credit products, before making a choice.

4. Consider the different loan products

Now, in many shops of home appliances, fur coats and other expensive goods offer to issue the credit in place. This is convenient, but not always profitable. Yes, you get the thing almost instantly, but the overpayment on the loan will be significant.

Compare different products and offers: consumer loans, loans, credit cards, installment card. They all have their own characteristics, advantages and disadvantages. As a rule, the higher the timing of consideration of applications and the requirements for the borrower, the more profitable a proposal, and vice versa.

So you can choose the conditions that are most suited exactly to your needs. The main thing - carefully read the terms of the contract!

5. Do not rush things

Spend at least three days to compare different credit offers and thinking. So you can finally decide if you do take out a loan, or you can do without it is necessary, as well as to choose the most suitable option.

Loans and credits - is a complex topic that definitely need to learn before you go to the bank. Haste can not only cost you a king's ransom, but also spoil life for many years.

If you want to know about all the features and capabilities of modern credit, visit a lecture on "How to get in debt, so as not to regret it," the project "The financial environment».

The lecture involves three Speaker: Head of the project "For the rights of borrowers' Victor Klimov, a member of the Committee on Development Women's Entrepreneurship "Support of Russia" Yevgeny Lazarev, as well as a blogger and consultant in finance Anastasia Tarasova.

During the lecture you will be dismantled in the existing loan products, get advice on financial planning and learn that to do in unforeseen circumstances: how to deal with the imposed insurance, what to do in case of bankruptcy, how to deal with collectors. At the end of the lecture, you will be able to ask questions and get advice from the experts how to get out of this situation.

The lecture is worth visiting to anyone who has at least one credit or in the near future is going to become the borrower is looking for opportunities for a more favorable loan or want to get rid of the existing debt.

The lecture will take place on October 18 at 19:00 in the library named after N. BUT. Nekrasov at: Ul. Bauman, d. 58/25, p. 14. To take part in this event, click on the link below and register.

Sign up for a lecture