If a loan is taken out, the general conditions have to fit in order to guarantee a full repayment of the borrowed money. On the one hand, this affects the creditworthiness of the borrower, which must allow a loan to be taken out. On the other hand, it is the self-chosen aspects such as the loan amount and, last but not least, the amount of the monthly installments that decide how high the risk of default is and what effort the borrower has to go through to settle the loan.
Many borrowers are too lax about monthly installments and their amounts. You just focus on the loan amount and see that the term is not too long. However, the fact that this can also result in a rate that is so high that there is a risk of failure every month is often neglected. It is only when the loan is repaid and the burden of the installment becomes a problem that many think again and wish for a loan with low installments.
We’ll tell you how to get the low-rate loan right from the start, and the easiest way to calculate the amount of monthly payments.
Why a low rate loan is so important
Think about how many expenses you have each month. Don’t just think about fixed expenses such as rent, insurance, telephone and car. Also think about the many little things that come in between. School books for the children, gifts for the holidays, clothing, a visit to the cinema or theater, a new piece of furniture, a new computer or a smartphone. This list of small and unplanned issues can be continued as desired. Many of these things may be delayed for a while, others need to be implemented quickly. If there is no money available for this due to a high credit burden, you quickly start to skid and have to set priorities. This usually goes so far that savings are made in other corners, bills are only paid later or another loan is taken out. However, all of this is the first step in over-indebtedness that you should definitely avoid.
Therefore, always choose a loan with low rates. Even if this means you are tied to the loan for a little longer and have to take a little more money into your hands due to the monthly interest. In the end, you will benefit from your decision and can easily master the repayment.
What does a loan with low installments look like?
If you want to take out a loan with low installments, you should first analyze your starting situation. Take a look at your fixed income and income. You should exclude additional services such as Christmas bonus or holiday bonus, bonuses or the like. Only count on the money that you definitely have at your disposal.
Then collect all fixed expenses. Also consider the little things that very often add up to a larger sum. Then plan a fixed amount for unforeseen expenses that should be available every month. Even if this is not called up every month, it should always be available.
Then deduct the expenses from your earnings and see what difference there is. At best, this difference is positive and so large that it can result in monthly installments for a loan with small installments. If so, you should not choose the loan based on the term, but always based on the monthly installment. No matter how high the desired loan amount may be.
By the way: The easiest way to find a loan with small installments is to use a comparison calculator from the Internet for your search. In this you can not only enter the desired loan amount, but also the desired monthly installment. So you save yourself a long search and know immediately where you can take out your desired loan.