During your life, you will often be offered to satisfy your wildest desires and projects through consumer credit … often accompanied by a short-lived and unmissable offer. You are tempted, you think about it, you educate yourself, compare via comparators, … but what to do? Go? Is it risky?
The best thing to do is undoubtedly to continue reading this article which will allow you to make the best decision or to follow the video of our Coach. Here is a list of criteria that will allow you to identify which borrower you are and make the best decision.
Is this an absolutely necessary credit?
You do not have the choice. You need money to pay for studies, university fees abroad, yours or those of your children. You have to insulate your house which no longer retains humidity and cold, you have to buy a motorbike or a car to go to the job you just landed, you have to pay important medical costs… The list is also long and unexpected than a lifetime .
The advantage of this criterion is that it presents an easy decision to make. This is an investment that needs to be made.
If you’ve identified how you can pay back without getting in trouble, then compare the deals and sign up for the best deal without remorse.
To help you manage your credit well, don’t hesitate to also read our article “How to manage your consumer credit?”.
Is it a selflessness credit?
This is the most difficult conscience case to resolve in the area of credit. You do not want to satisfy your own desire, but to please someone who is dear to you without having the means immediately.
The examples are endless, taking your children on vacation, offering a jewel to your fiancée for this famous request, paying for your wedding and offering a memorable day, playing too generous Santa Claus in your large family, or helping a loved one in a difficult situation,…
In this case, this is no longer an investment, but an expense on which you will have no financial return and will find nothing in return except the inestimable gratitude from the person who receives it.
Our advice is then to give in to this desire or this madness only if you have taken the time to estimate your repayment capacity, but especially if you think that this expense is perfectly exceptional and should not happen again in the coming months.
The risk on this criterion is not on the first credit, but on the second or third credit that you risk to chain. It is often the accumulation of credits that creates complicated situations.
Is it a self-reward credit?
What could be more legitimate? You work, you save, you start to dream. Financial institutions tell you that you can already claim property or leisure right now, when you thought you would have to save for several more months. So that’s it, you can start to consider a vacation in New York or Bali, you can push the door of a scooter dealership, you can test the latest smartphones, you can, you can,…
We are here in the most classic criterion. The banking establishments simply offer you to save time in exchange for the monthly interest payment.
In this case, do not rush … right away. Take time to think. First identify the amount of due dates, because this is what you will have less to make you happy every day. See far and not only when the project is due, but when the interest is due. A trip lasts two weeks, three weeks, a month but the deadlines last several years.
Is it a small supplement credit?
The vision is great, the project is immense. You borrowed to buy your house and obviously included all the work. All of them? No… you saw a little right and the complete renovation of the bathroom is still missing.
Is it necessary to borrow for additional work?
Our advice is simple. You already have a mortgage, you have already done a lot of work that has already given you all satisfaction. In this case, we advise you to take the time to save. You can reassure yourself on your ability to repay your mortgage.
Is it facility credit?
You have noticed that your income does not always cover your daily expenses. You then observed “cash flow gaps” which created “agios”. If the situation has tended to renew itself, your banker may have offered you a “revolving credit”. or “revolving credit”.
This type of credit is more and more widespread. Simple to use, it’s a line of credit to use whenever you want, with a maximum amount of use. It costs you nothing if you don’t use it (if not any management fees). This credit has the advantage of being reimbursed very easily since there are no penalties for early repayment.
This is rather reassuring when you have little money in your current account and no savings, because in the event of the unexpected, you have the ability to pay at any time, without calling your agency, day or night.
The danger is that the response to a one-time event can very quickly turn into continuous use of a loan with a high interest rate.
We therefore advise you to subscribe to it if you may have low and ad hoc cash needs, which if necessary would lead you to overdraft situations. But always be vigilant. The worst reflex would be to use the maximum reserve for reckless needs and never manage to repay it. You will then pay significant interest, be unable to cope with unexpected events, and may even be overdrawn again and … will have reduced your debt capacity.
What borrower are you?
So which borrower are you? 1? 2? 3? 4? 5? If you manage to locate yourself, you will be able to borrow (or not) knowingly. If you are embarking on a loan, we suggest that you use our credit comparison tool.