Smart spending – a convenient way of financing
Typical obligations such as buying food, paying rent and overheads, monthly loan commitments, card costs, etc. are typically settled on a regular monthly basis, ie salary or pension.
Occasional, more expensive, expenses such as the purchase of a car, household appliances or television, the obligation to register and insure a car, the replacement of roofing, the renovation of an apartment, the payment of tuition fees, etc., are usually serviced with the money we borrow from banks.
The article deals with the subject in detail. If you’re just looking for the best line of credit and don’t have time to read, you can fill out a credit questionnaire right away.
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Bank financing includes overdrafts on current or giro accounts, non-purpose or purpose loans, interest-free installments and consumer loans, revolving credit card loans, deferred payment on charge cards, etc.
Do we borrow for good reason?
It is necessary to finance from the bank’s loan the purchase of goods or services that we need at a given moment. Namely, when we buy goods or services from credit, we consciously take on certain risks.
For example, the potential risk of lack of income due to the onset of a serious illness, loss of employment, irregular payroll, etc., may call into question our social existence.
However, our rational consumption is compromised by everyday advertising content and sales methods such as promotions, seasonal discounts, shopping points cards, product giveaways or 2 + 1 discounts and the like. The fact is that marketers manage our behavior through marketing, so we buy goods that do not meet the criteria of price, quality or need.
A range of banking products available to citizens
Not too long ago, the practice of paying pay with an employer was replaced by a payout at a bank. As a result, citizens are forced to open a current or giro account. In addition to transaction accounts, additional banking products are made available to citizens.
For example, with an open current account, citizens can use mobile and internet banking, overdrafts, arrange interest-free installments and similar services.
Using current account overdrafts
Although it is called “allowable minus” in the jargon, and we often treat it as revenue, the allowable bank overdraft used is a counter-credit.
The great advantage of overdraft is the flexible management of borrowed funds within the allowed limit.
However, the interest rate on the overdraft is high, amounting to about 9% a year.
Current account minus is a form of credit that is put to the citizens at a fairly high interest rate, so they should be used for a short period of time, only a few days, and as little as possible.
If you are part of a group of citizens that uses the overdraft limit on an ongoing basis, you should resolve your current account debt with a cash loan. Then ask your bank to cancel your current account overdraft, or at least significantly reduce it.
The current account minus is not a fund for black days, because when difficult times occur and your regular income is reduced or absent, the bank will cancel the minus!