The percentage of people who hang up when they hear the words “credit” or “credit card” on the phone has dropped significantly over the past few months, according to bank statistics. They argue that in financial institutions, in addition to the general economic situation, the increase in demand is also facilitated by lower rates, and is Associate Professor of Finance for Sustainable Development, Russian University of Economics. GV Plekhanova Maria Yermilova adds in a comment to Gazeta: “It looks like the workload will increase by the end of the year. Now loans have become more attractive and necessary. If the situation in the country becomes more complicated, citizens will try to close the loans, incomes will decrease so that the delay and the amount of debt do not increase. This is especially dangerous because some loans are secured with collateral that can be lost. The situation will likely begin to stabilize before 2023.” A few currency figures: Home Lending, for example, states that interest in lending rose from 8% in April to 12% in May, and Rosbank in loan applications compared to March this year. He speaks of a 38% increase. And experts predict that these numbers will only increase, which means it’s time to finally understand what “easy money” is for some and a red flag when it comes to personal finances for others. Loans, credit We answer the most popular questions about cards and microloans with financial advisors who know everything about money dealings.
Tatyana Volkova – financial adviser, speaker of the project “Program for the development of financial literacy of the adult population”, founder of the course “Become an investor”
Are the loans bad?
Loan loans are different. Consumer credit is bad when we buy something for ourselves and it immediately depreciates in value (e.g. a new phone) or puts a mortgage on the apartment we live in and gives the lion’s share of the income – that’s how we get the money. the future. The existence of such loans suggests that the basis of thought is the lack of resources.
But there are other loans as well. Credit can be used wisely as an investment leverage for rapid capital creation. For example, an investment mortgage that allows you to earn up to 100% on the invested capital. And it’s about generating a cash flow at the expense of other people’s rapidly depreciating money. And about a completely different picture of the world.
Loans – life in debt or a good opportunity to allocate the budget?
Consumer loans are a life in debt, where a person already has money from their future, undertakes the burden of overpayment. Often times, it pays double or triple the cost of the purchased item. There will be those who disagree with this view, believing that everyone now lives on credit and that this is the only real development scenario. This idea is based on the belief that great financial goals cannot be achieved without credit. However, this belief is demonstrated by marketers through the prism of “buy now, pay later”, but such a strategy will only lead to a financial vacuum and poverty in the future.
The credit load should ideally be no more than 50% of your income. For example, with an income of 50,000 rubles, a credit load of up to 25,000 rubles is acceptable; In crisis situations, the risk of bankruptcy is higher.
What does “damaging credit history” mean?
Credit history is a consumer’s rating, which consists of how they calculate with previous loans, or the absence of a rating if there is no credit. To spoil credit history means to go through overdue debts, bad debts, bankruptcy proceedings.
How is it developed?
1. Check your history on “Gösuslugah” in your account.
2. Close all overdue debts without exception and get a document that you don’t have any debts.
3. Gradually take new loans, starting with small amounts, and repay them regularly.
4. Request your updated score periodically.
Under no circumstances should you believe stories that your credit history can be “cleared” for money, deleted or your score can be raised. These are the stories of scammers.
Is microcredit too scary?
Microcredit is the most expensive type of loan where the amount of overpayment can be 10 times higher than a consumer loan. This is a trap for financially illiterate people. It’s conditionally extreme, because often people whose ordinary loans are denied get into this story. The main difference between a micro loan and a loan is the interest rate and the ability to get a loan even with a bad credit history.
A microcredit is dangerous because of its availability and ease of obtaining, and it also carries reputational risks. Look by the banks: for example, you decided to take a mortgage of 5 million rubles with a monthly salary of 150 thousand and a loan debt of 10 thousand. The bank that saw 10k micro loans in your story will ask a logical question: For what? You earn quite a lot of money, don’t you care? How do you plan to pay off a major loan in this situation?
A secured loan – pros, cons, pitfalls?
It is easier to get a secured loan because of the availability of collateral. For a bank, this is risk reduction: in case of breach of credit terms, the lender (bank) can confiscate or sell the property. Therefore, secured loans are easier to obtain than traditional consumer loans. Often the rate is lower as the risk of not returning is reduced.
The presence of the deposit can be negative, and if a person did not calculate his strength, for example, he could lose even his only home. Carefully read the property pledge agreement, study the period for removal of the load and the grounds for restricting registration.
Credit card or credit?
What does a credit card give? The interest-free grace period and the possibility of systematically depositing and withdrawing funds – in other words, the mechanics of using funds are different for a credit card.
What should you always pay attention to when dealing with loan products?
For all conditions: the amount of interest on the loan balance; the possibility and conditions of early repayment of the loan; the amount of the fine for violation of the return deadlines; payment procedure and deposit time to the account. Loan term and any additional terms.
How not to “fall into the debt hole”?
1. Plan expenses.
2. Work with income leverage by continually increasing the number and size of income sources.
3. Work on smart ways to save money to get the same thing with less money (for example, buy a cashback card or fly miles); working on beliefs to form new habits, beliefs about the abundance of resources in the universe; Forget credit cards altogether, work on financial literacy.
The main life trick is to refuse cards and loans. And if these are investment loans, the approach is different – we use other people’s rapidly depreciating money and make new money out of nothing.
Source: People Talk
