Tips for borrowing money

Nowadays, many people want to buy products before they have the money to do so. Sometimes the products are very necessary and you will have problems if you cannot buy them. For example, if your washing machine is broken or if your computer no longer works and you need it for work or school. Borrowing money can be a solution for this. However, everyone knows that you have to pay back more money than you borrowed. That is why a number of tips are given below.

When is it really necessary to borrow money?

Before you borrow money, you must first consider whether it is really necessary. If you still have a well-functioning TV, there is no real need to buy a new one. It’s better to save for these kinds of things, because borrowing costs money. However, if you no longer have a product that you really need, it is useful to borrow. These types of products include: washing machines, tables, beds, cupboards or other things that are very necessary in your own home. But you can also borrow money for products that you really need for school or work; such as computers, printers, tuition fees or study books. A diploma is very important to get a job. You will usually receive a higher income with a diploma than without a diploma. This way you can easily recoup the money you paid in interest on your study books, for example.

When is it possible for you to borrow money?

Before you borrow money, you must be sure that you can repay this money and the interest within the specified period. If you are not sure whether this will work, it is better not to borrow. This can put you in serious debt. If you know that you cannot repay the loan, you will have to save for the product you want to buy. Of course, that’s not easy if you don’t have a washing machine, for example. But it is still better to wash the laundry by hand for a while than to get into debt. Once you get into debt, it can become very high and it is difficult to get out of it. It is therefore best to only borrow money if you are sure that you can repay it.

How do you know how much money you can borrow?

If you are not sure of your income, it is better not to borrow money. If you have a fixed monthly income and your contract has not yet expired, there is an option to borrow money. However, you must make sure that you still have enough money left for your other expenses. First calculate how much your income is per month. Deduct the following costs from this:

  • The rent or mortgage
  • Gas, water and electricity
  • Groceries (food, clothing, care products)
  • Other fixed costs (telephone bill, internet costs, study costs)
  • About a hundred euros for any additional costs

The amount you have left is the amount you can repay per month. This way you can calculate exactly how much you can borrow.

Where is the best place to borrow?

There are many companies that lend money that are not reliable at all. Borrowing from a bank is usually reliable. If you would like to borrow from a company that is not well known, first look at the references about this company that can be found on the internet. Look up about a hundred references from this company and read them quickly. If there are negative references, study them carefully. It is better not to borrow from this company if you can find five or more references that indicate that the company is not reliable.

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