If earlier the bulk of the population in ourthe country lived from paycheck to salary, today many people have to live from one loan repayment date to another. That is, the terms have changed, but the amount has remained the same. And with the next financial analysis of the family budget, someone in horror grabs his head, asking the only question - "where did the money go?". Sometimes this question becomes so acute that you involuntarily think: is this a blessing - a life in debt? Like most responsible decisions, one way or another related to financial risk, the intention to take credit - the pros and cons can not always be recognized at a glance - requires a thoughtful approach.
Consumer credit - is it evil or good?
Consumer credit has become a common occurrence inour daily life. At first glance, it consists of solid pluses. You get the thing you want, today, and not when you can save money for it. And if you consider that many consumer loans are non-interest-bearing, it simply heads from such an abundance of benefits. But is it so simple? Before we climb into the consumer loan debt hole, let's try to get acquainted in detail with this positive kind of lending from all sides. Let's start with the most obvious benefit - the lack of interest on the loan. This is the first thing that buyers come across without thinking that no bank will ever work without profit. So let's see what your interest-free loan is. Commission for registration. Despite the fact that it is levied at a time, its value can reach on average 20-25% of the loan amount. The loan service fee will be about 1-3% of the amount. And it is paid monthly for the entire term, to which you were given your not-so-interest-free loan. And keep in mind that the service charge is not collected from the balance of your debt, but from the amount originally taken by you. This means that your debt decreases, and for service you pay, as if only formalized a loan, with the original amount. Insurance. If the amount of your loan is large enough, then the bank may well require you to insure your life or health. Most often, the insurance company will be offered to you here, and if you ask, you will for sure learn that the shareholder or founder of the insurance company is the bank in which you are going to take the loan. If you summarize all these payments and distribute them for the period of using the loan, it turns out that every month you give the bank from 12 to 36% in excess of the value of the goods you took out on credit. And this is just a simple financial calculation, the usual arithmetic. And if you add a psychological factor and the influence of a lot of advertising, then surely the goods purchased by you on credit will be much more modern and heaped than what you originally intended to buy. After all, you bought it under the magical effect of those zero percent. But if initially you could not afford this product for one hundred percent of the cost, what's the point of paying for it one hundred and fifty percent? Are you so rich? 
Cash loans and plastic cards
Let's look at monetary loans: Pros and cons in terms of the borrower. The undoubted advantage is that in unforeseen circumstances you can always get the amount of money you need without burdening your friends or relatives with your problems. On this positive features end and negative starts. If you take a cash loan from a bank, then you need to provide the bank with a lot of documents. Starting with a certificate of income from work and ending, if you take a large amount of money, documents on property in the property. And if you remember that banks prefer to get as much money-back guarantees, then sureties can also be required. This is about fuss and document collection. Further, cash loans are given at interest rates, and each bank has its own interest rate. In addition (usually in promotional brochures this information is not indicated, but you better know about everything in advance), the bank will charge you for maintaining your account, it will be plus 2-3% to the basic interest rate. It is also worth noting that in the contract there may be an item on the right of the bank to revise the interest rate on the loan unilaterally. And not the fact that it will be revised in your favor. So, if you are forced to ask the bank for a cash loan, consult a specialist and carefully choose a bank. All kinds of plastic cards, imposed by banks, is also one way to get into the credit trap. And if you still decided to use such a proposal of the bank, keep in mind that such a credit card is better to pay directly for the goods. In this case, in addition to the interest rate indicated by the bank and the amount of commission for opening an account, you do not have to pay for cashing out money. But if you needed cash, then be prepared for the fact that you will have to pay an additional 1-3% of the amount received in the ATM cash. 
Mortgage - good?
Perhaps the only type of lending thatsmall reservations can be called a boon - it's mortgage lending. Agree, it is one thing to save money for a TV, washing machine, car or refrigerator, and quite another - to raise funds for the purchase of housing. What is worth paying attention to when choosing a mortgage program.
- Timing. Too small a loan term will significantly increase the burden on your family's financial budget. But at the same time, the longer the period for which you took the loan, the more interest on the loan you will pay. Try to observe the rule of the golden mean.
- Currency. The choice of the currency in which you will pay the loan depends on the currency in which you receive the salary. If you are given a salary in dollars, then take the best dollar loan to avoid unnecessary costs when converting currency.
- Terms of early repayment. For example, you suddenly got lucky, and you got an inheritance or you were promoted. Now you can pay a large loan per month or you can pay off the balance immediately. In the contract there must be an item that allows you to do this.
- The interest rate on a mortgage. Currently, on average, it is 10.3% per annum in dollars and 11% in rubles. If we take into account that over the past year, house prices have increased by an average of 25%, the benefits are quite obvious. It turns out that you "frozen" the price of your housing relative to the value at the time of the conclusion of the contract.
The bank in which you take the loan, be sure tocheck the purity of the legal transaction, check the housing that you are going to buy, and ask you to arrange insurance for it. While you are paying for the loan, your home is pledged to the bank. Therefore, the bank is interested, so that your home does not have one more owner, and you are not a victim of scammers. Having considered all the pros and cons of the loan offered to you by the bank, clearly calculating your own capabilities, you can safely conclude a mortgage loan agreement. Today even specialists consider this kind of life to be the most painless. You do not throw money away, paying a tribute to fashion or consumer instinct, but you buy real estate, for which it is not so pitiful to give debts. When you are going to take a loan, remember the well-known proverb: "A miser pays twice, but a fool three times." So, do not buy on advertisements about the benefits of interest-free credit. Money is known to be loved, and we just have to hope that this article will help you to understand how profitable the loan is for you personally.
