So that a consumer credit or loan does not lead you into a debt pit, you need to weigh everything carefully.
Evaluate your possibilities
. Calculate the amount and for what period you need it. But keep in mind that you will have to return not only this money, but also interest and possible additional payments.
If about half of your annual income is spent on payments for all credits and loans, there is a risk that you will not be able to repay the debt. It is optimal when payments do not exceed 30% of monthly income. And at the same time, you have a financial security cushion. Consider future large expenses, one-time and regular, such as paying for children’s education or annual MOT, OSACV and car insurance. Or a planned decrease in income, for example, if you are going on maternity leave.
Find out how much you will have to pay
Be sure to find out the full cost of the loan (PSK). It takes into account both the interest rate and other costs provided for in the contract, such as mandatory insurance or credit card issuance fees.
The bank must indicate the full value of the loan in the upper right corner on the first page of the contract.
Check whether your contract includes any additional paid services that you do not need: credit card, SMS notifications, voluntary life and health insurance, remote service or notary services. Check whether these points are mandatory or you can opt out of them.
Please note that in the cost of the loan, the bank should not include services for which you did not give your consent and those that it provides in its own interests: consideration of the application, preparation of documents for the contract, maintenance of a loan account.
Compare the conditions of different lenders
Any bank, MFI, CPC or pawn shop has general terms of a consumer loan agreement – these are standard requirements for anyone who wants to take out a loan or loan. They can always be found on the organization’s website or its office.
But in each contract there is a set of individual conditions – they determine the cost of the loan or loan, terms and the amount of monthly payments, including interest.
Individual conditions consist of 16 mandatory clauses and may contain additional clauses. All of them must be agreed between the bank and the borrower.
All conditions must be specified in a special table at the beginning of the contract and must be clear to you. The contract itself can be considered concluded only if you and the bank have reached agreement on all points
In addition to the main one — the loan amount, term and interest rate — be sure to check the following points:
1. Payment schedule
Make sure you can pay the required amount to the bank on time. It is better to be safe: for example, if you have a salary on the 20th of each month, you should choose the date of depositing money no earlier than the 25th. After concluding the contract, the bank is obliged to give you a schedule of payments. For credit cards and cards with an overdraft, an exact schedule is not issued, but the terms of repayment of the debt are prescribed in the contract.
2. Early debt repayment
If you wish, in addition to the mandatory payments according to the schedule, you can make additional amounts – they will reduce your principal debt. Then less interest will accrue.
After each such early repayment, the creditor must draw up a new schedule for you. Many contracts allow you to choose for yourself – to leave the previous amount of payments and shorten the term of the loan, or to reduce the monthly payments and leave them as they were. It is most profitable to settle with the creditor as soon as possible – then the final overpayment will be smaller.
Usually you need to warn the creditor about your decision to pay the debt early at least 30 days in advance. But a shorter term may be established in the contract. Sometimes it is enough just to check the box in your personal account on the website or in the mobile application, so that the additional amount is credited and a new schedule is issued to you. Check in advance. Read more about the early repayment procedure here.
3. Fines and penalties
Find out what will happen if you fail to meet your payment schedule. If you know in advance that even a day of delay will cost 1,000 rubles, then perhaps you will pay more attention to the dates in the calendar.
4. Processing of personal data
There may be a clause in the contract stating that you allow the use of personal data. Specify exactly how they will be used. If in order to send you advertising mailings, then you can opt out.
5. Assignment of rights
Usually there is a clause in the contract that the creditor has the right to transfer your debt to third parties. For example, if you miss payments or the organization itself decides to close. You can prohibit the assignment of rights, but there is a possibility that then you will be increased the rate or denied the loan altogether.
Do not rush to sign the contract right away. As a rule, you can take 5 days to think about the offer. At this time, the bank cannot change the individual terms of the contract offered to you. And you can compare the offers of different lenders and choose the one that suits you.