You do not usually take out a loan because you have so much money left at the end of the month. If that is the case, it is of course more sensible to first build up a buffer and to use your savings at the end of the ride for unexpected expenses. Even with a narrow purse, it is often possible to set aside some extra money; though you save only a few euros per month, as long as you stay away from your savings account, you still build up something. But what if you already have a loan and are in trouble with your payment terms?
When you take out a loan, it is wise not only to look at how much you can borrow, but also and especially how much you can pay off. Getting a few hundred or even a few thousand euros extra is of course very attractive, especially for people who struggle every month to make ends meet. But please note: there is no loan without repayment, and that repayment is a monthly bite out of the budget! So when your desire is greater than your capacity, it is only a matter of time before you end up in ever-increasing financial problems.
Problems with payment terms: First Aid
If you have taken out a loan and notice that you are not able to repay the loan as agreed, do not put your head in the sand, but come into action! You do this by grasping the cow by the horns and exposing the buttocks to the person with whom you have taken out the loan. If this is the case with a social institution, such as SBN , you can often get help in the form of budget management. A regular lender is often a lot less reasonable, but as a rule, a payment arrangement can be made. To maximize the chance of this, you pay at least the amount that you can miss, even if it is only a few bucks. Many lenders are more lenient when they see that at least you are doing your best to pay off the loan. Do this before you hire a debt collection agency: although you can often make very reasonable agreements with a debt collection agency, enabling such an agency means that the debt quickly increases in height.