Studies have shown that every person asks himself at least once during his life: How much credit can I ever afford if I ever had to or would like to take out a loan? The answer to this question is very complex and not always the same for every loan seeker. We have tried to summarize some tips for you with simple words and help in order to calculate your personal loan amount yourself.
First calculate and then apply for credit
If you want to apply for an online loan, the desired loan amount will almost automatically come about. The new washing machine or the dream car have their fixed price. If you dispose of a credit line or other old debts, you also have a secure calculation basis in the form of the amount due. If you are planning home improvements, you better not only rely on the cost estimates of the craftsmen, but rather calculate more generous and plan a small loan part for unforeseen overspending. The same applies to the acquisition of a property. Once you have determined your credit requirements, a second, equally important arithmetic problem awaits you with the answers to the questions: can I afford this loan or, in principle, how much credit can I afford?
funds fall and budget bill
The future loan installments you need to be able to spare trouble-free month after month. That’s the only way you’ll really enjoy the expenses you’ll soon be pumping up and avoid snapping the notorious debt trap. You want to continue living as usual and even small extras do not always have to miss.
So there is a household bill. First add up your regular costs such as rent including utilities, insurance for yourself, the home or car, the approximate gasoline, telecom costs, any upkeep or old debt installments you still need to serve, and any membership fees in clubs or the gym. Of course, you also want to live for that and have to estimate the corresponding costs. For the head of the household, many banks set a monthly lump sum of about 700 euros. Each additional person in the household calculate it with 250 euros. For these guidelines please always ask yourself if they correspond to your actual lifestyle.
Add a small amount to this sum for new reserves or unforeseen expenses. Years of experience shows us that you will almost always need such a reserve. Subtract the final amount from your household income and you have an indirect answer to the question: how much credit can I afford?
Are you looking for an online loan that you can afford? We help you. For credit comparison
Loan rate and duration of the loan
The calculated difference equals the loan installment, which you can afford well and without major restrictions on a monthly basis. At the same time, the amount tells you which loan amounts can be financed with this installment amount. Decide now how long your new loan should run. With longer loan periods, you reduce the monthly charges or simply treat a higher amount with a fixed amount. When making your loan comparison, pay attention to the possibility of special repayments. A new salary or inheritance job may soon give you the financial muscle you need to pay off the loan faster, save interest, and become debt free faster.
Too expensive old loans? Now reschedule!
You still have an old loan, the credit line is exhausted or the checking account is even overdrawn? Get rid of such expensive burdens and finance the outstanding amounts with a new low-interest loan. You save money every month. Contrast old and new borrowing costs and let yourself be amazed at how much such debt restructuring, expressed in terms of saved euros, actually does. Include this shift immediately in your original loan request or do not be afraid to spend a new loan just for rescheduling.
Beware of over-indebtedness
For just under one in ten Germans this warning comes too late, because he is already sitting deep in the debt trap. Above all, frivolous recorded consumer debt, a lack of budget and lack of discipline in spending were the trigger for many later over-indebtedness. Wherever loans are used for sustainable spending such as buying or investing in a property, there are fewer problems. Especially as borrowers can still counterbalance their debts even if their economic conditions deteriorate, whereas once expensive televisions, smartphones or notebooks are no longer suitable just a few weeks after the start of financing, their creditors even approach compensate.
Avoid similar mistakes when applying for a loan. You do not have to do without it, but you can still fulfill many wishes. But think of your budget in advance, be thorough and honest with yourself, because then no credit prepares sleepless nights and you have real pleasure in your purchases.