This approach will not only save you money, but will also make loan repayment much easier , which will not burden your family budget.
Proper use of cash loan
If you divide all situations where you are in urgent need of money into 5 categories, you can find the optimal solution for each situation in the form of narrowly specialized credit. We’ll tell you how to solve this difficult situation, giving you the 5 main reasons for your shortfall.
Situation # 1
. The family has decided to make some minor repairs to their apartment, but it is not yet known how much money it will require . Estimated costs will range from € 600 to € 1,000. In addition, the money will not be spent immediately, but gradually over 2 months.
The most appropriate option in this case will be the overdraft at the bank where you receive your salary. But you will only be able to apply for such a loan if you have no financial obligations to other creditors. Getting an overdraft will not take you much time. Your application for funds will be processed within 3 days.
How much will the bank be able to offer you as an overdraft? For example, if your salary is around 1,000 euros, the overdraft will range from 700 to 1,000 euros. As a result, you will be able to spend between 1700 and 2000 euros depending on your salary.
The advantage of an overdraft is that you can spend the money you borrow at the bank gradually. If the repair is suspended for any reason, the money issued will not disappear. You will be able to use it even after six months or one year. However, you will have to pay interest on the amount of money you have already used.
Situation # 2.
The family plans to go for a rest in October. Already in June you have found attractive airfare as well as good hotel booking rates. At the moment, you do not have all the money you need to pay for your airfare and hotel accommodation right away. But how do you miss that opportunity, because there will be no more opportunities to save that way?
In this case, a credit card with a credit limit will be the best choice . First of all, it will allow you to get extra cash. Secondly, without a salary card, you will have another card that you can use at any time outside your home country (if your salary card does not work or is lost). The credit card will carry an amount equal to your salary. For example, if you receive about $ 1000 a month, your account will have the same amount of money ($ 1000). In addition, with such a credit card you will be able to pay for a flight, hotel or car rental during your vacation.
Another major plus of credit cards is free travel insurance to another country. This service is usually included with most credit cards.
Situation # 3.
The family has a pressing need to replace their home appliances: buy a new TV, replace their oven with a more modern one, buy a good discount vacuum cleaner. For all these purchases, the family will need between 800 and 900 euros.
In this case, the consumer credit will be the optimum choice. For example, with a 12-month repayment period, you can make a monthly payment for a small purchase. In addition, you will be able to use a new technique from the very first day you apply for a loan. The most important thing for a consumer loan is that you do not need a pledge to get it, but the next borrower must have a steady and sufficient income (official). If successful, you can also save on a consumer loan by repaying the remaining debt early.
Special attention should be paid to the monthly payment of the consumer credit. They should not put a heavy strain on your family’s budget and should not exceed 40% of your family’s total income.
Situation # 4.
The family has a broken car and the issue of buying a new, albeit used, car is topical. The family decides to buy a car for about 5 years worth up to 10 thousand euros.
Of course, our choice of potential borrowers is not so great: leasing or car loan. These two financial products differ only in terms of the terms, the annual rate and the form of ownership (the leasing car owner will be the leasing company until the borrower pays all the debt). Judging by the terms of the leasing program, the car can be purchased on leasing if it is new or not older than 5-7 years. The leasing program obliges you to make a down payment of 10-25% of the total value of the car. But interest rates here are really lower than car loans.
In the situation where you make the choice for a car loan, you will be the owner of the car after signing all the contracts. Auto loans vary in interest rate, but do not oblige you to make a down payment or take out an insurance policy.
Situation # 5.
This situation applies to the most unexpected and unpredictable life events for which you do not currently have enough money. For example: someone close to you is seriously ill and you urgently need money for treatment; you should see a dentist immediately; a child’s broken outdoor jacket but no money for a young one at the moment; a broken car and its repair costs around € 300.
It is precisely in these situations where money is urgently needed that there is simply no time to think about the most rational ways to ‘get it’. Therefore, the optimum solution will be fast credit, which will be executed in literally half an hour. But it is important to know that such outside help should only be used in the most unpredictable cases , so if you just want to renew your wardrobe, it is better to wait for a salary and not fall into irrational debts.
You will appreciate the simplicity of quick credit, even if your credit history is not “perfect”. But do not forget that such loans are characterized by increased annual rates, so they must be returned as soon as possible.
Another “plus” of fast loans: Many novice lenders try to attract as many customers as possible, so they allow you to apply for your first fast loan at no annual rate . Note that the annual rate will not be calculated on the principal amount of the loan itself if the borrower is able to repay the entire debt by a specific date, such as within a month. In this case, if you borrow $ 300 on June 1, you will pay $ 300 on July 1 and all your debt will be paid off, but no later than the agreed date.
Tips for future borrowers
If you need money urgently but are catastrophically short of time to find a suitable program , you can do the following:
- Contacting a bank broker who will find the optimal lending option for you will help you to collect and hand over your documents to the creditor. In this case you are guaranteed to use the same credit program of a popular bank. However, in exchange for such a service, you will also have to pay a certain percentage to this intermediary. Usually the payment is about 10% of the loan amount. The reward to the broker will only be transferred after you receive the credit.
- Use the online credit comparison portal . There are many such websites and each of them offers several available credits at terms that you can instantly access by going through the quick link. The system also runs a benchmarking device: calculating the repayment terms of various bank loans will show you which one is more profitable than the rest and how much money you can save.
- Submit one form with your details to a website that deals with applying for credit to any potential financial institution. Once you receive a positive response to your application, you will be able to choose the most appropriate offer and apply for the credit right away.