Overindebtedness due to consumer credit can be avoided thanks to our advice.
Consumer credit is a good solution for Mugridger a good or service in monthly installments. But the situation can turn into a nightmare when the borrower is not very vigilant, is too often tempted or does not plan his purchases for example. Here are some tips to avoid over-indebtedness due to consumer credit.
Make sure that the refund of the credit is possible
It’s easy today to get a Mugridger consumer credit for a luxurious trip, home appliances, furniture and more. However, if you suffer from buying fever, take advantage of this solution Mugridgement may lead to disaster because monthly payments can be extremely burdensome.
Before taking credit, it is therefore essential to ensure solvency, that is to say that we can repay the entire loan while facing household expenses.
It is better sometimes to give up a purchase or to postpone it in order to wait for a more favorable period for this type of expenditure.
Take the time to think
A borrower has a 14-day retraction period during which he is quite free to reconsider his decision to take out a consumer loan. He does not have to justify it to the lender.
Funds are usually not paid before the expiry of this withdrawal period, but only after the borrower has signed the final acceptance of the credit.
Saving to face the unexpected
No one can be certain that no unforeseen event will disturb his financial equilibrium.
A consumer can very well engage in a credit consolidation because his situation allows him, and find himself overnight unable to meet his monthly payments.
Among the most frequently encountered reasons are job loss, a health problem, a change in the family situation, a mandatory unforeseen expense such as repairs to a vehicle or a change in the boiler, for example.
Saving regularly makes it possible to build a small nest egg well useful in case of unforeseen circumstances.
Always declare loans in progress
Over-indebtedness due to consumer credit can also hit a family when the borrower has not been quite honest when asking for his credit. Indeed, it is not uncommon to omit to declare all loans in progress when applying for a loan, so that the bank can not detect an excessive debt ratio. Conso credit is then granted. However, the financial situation of the borrower will not allow him to face the monthly payments.
It is possible to opt for the repurchase of credit which makes it possible to regroup all its credits in one and to lighten the monthly payments.
Do not repay old loans with new credit
Although this seems tempting when the accumulation of credits makes the situation difficult, it is risky to incur a credit to repay outstanding credits. This amounts to making the situation even more difficult, and it is almost impossible to avoid over-indebtedness in the more or less long term. Some consumers engage in several loans at risk of getting into debt at more than 33%.
Thus begins the infernal spiral of over-indebtedness due to consumer credit.
It is important to learn how to reduce expenses to improve your financial situation.
Opt for credit insurance
Credit insurance is a good solution to avoid over-indebtedness due to consumer credit. It allows anticipating in case of difficulty since it covers – according to contracts – unemployment, illness, accident, loss of autonomy, death.
In the event of unforeseen circumstances, the insurance covers the repayment of the credit in progress.