Research and statistics show that since 2014, more and more people are using payday loans for a variety of purposes , and many of these people are unable to assess the amount of credit they can actually afford to pay.
Although it is not possible to answer this question universally for everyone, but we have put together with our experience as easy to understand as possible Leitfanden with the most important tips and hints. This should allow everyone to make a useful assessment of how high a loan should be in order for it to fit well into the overall personal financial situation.
The steps listed here you should look at in any case already once before with the payday loans Compare begins.
The budget statement & cost statement
The first step towards the question: “How much credit can I afford?” Around which one just can not get around is a detailed statement of the current income and expenditure . In the case of longer credit terms, of course, this also has to include whether the compiled factors are likely to change over the course of time, such as a job change or a rent increase.
It is best to start with the most obvious, easily predictable and regular costs and revenues, such as:
➔ Other sources of income
➔ rent including utilities
➔ Car / gasoline
➔ Internet / telephone / TV
➔ alimony payments
➔ Existing costs for installments of existing payday loans
➔ Any memberships in the gym etc.
➔ Leisure / shopping / going out
If you subtract the expenditure from the income at the end, you get an approximate assessment of the financial scope that still allows the everyday life . Here you just have to be honest with yourself and see if you think you can afford a loan. If, for example, after all spending 200 euros left, you should think twice whether you really want to pay installments of 50 € a month or can.
This list is also important because many banks set flat rates first and accept for the head of household about 700 and for each additional person 250 euros, which remain at the end of the month. Here you should be able to assess whether these guidelines really apply to your own situation .
Apply for a payday loan
Before it goes to the actual loan application, then you should then necessarily take a loan comparison. If a loan allows for special repayments, you can be more flexible and pay off the installments earlier than originally planned. The same applies to the possibility of suspending installments, some providers allow this possibility, should one get into a financial bottleneck.
The purpose of the loan can also be important. For example, you will not get any special benefits for a loan for the purchase of furniture, but if it is a car or even construction loan, you can hope for much better conditions. Because there is a direct equivalent, which serves the bank as collateral.
Of course, you also have to pay attention to interest rates and installment rates on payday loans to answer the question: “How much credit can I afford?”. By the way, you have to be careful here – you can not always rely 100 percent on the information that calculates the big loan comparisons, for example, based on the information you make in the application, as we do for example in ours financingore experiences have shown.
The comparison is useful in any case, but a complete and reliable assessment of the cost of a loan is in the end usually only possible if one holds the offer of the bank in the hands. That’s why serious credit comparisons are never binding when it comes to soliciting quotes and never charge any pre-payments.
How much credit can I afford: conclusion
Regarding the question “How much credit can I afford?” One can say on the one hand, that it can be answered individually only for each one – on the other hand one can receive with a bit of work but also a fairly precise assessment . If you have looked through your own finances in peace and leave a little leeway for any changes, you can quite get involved in a loan, without having to fear problems.
If possible you should generally look, of course, that one prefers less and not just on the financially feasible limit.