The loan application process requires us to specify in which period we will pay off all loan installments. Depending on whether they are payday, we can have it a month, or even years, when it comes to mortgages or secured loans. The decision we make when signing the loan agreement will have consequences lasting many months. So let’s take advantage of good advice that will allow you to determine the repayment time of the loan, which will be comfortable and safe.
The most serious mistake that applicants make is not to take into account any changes in income. These persons assume that since today they have three hundred dollars a month from the payment, they can afford to repay this amount every month. But what if in a year they change jobs to a less-paid one or the costs of bills increase? Then they will not be able to pay their loans. So we should always choose a variant of the secured loan that gives us a safe financial margin. If we have these three hundred dollars a month, let’s take a loan for such a period to pay back two hundred dollars every month. We will stay one hundred dollars, but it may prove useful in the future in the event of unforeseen events.
A loan with a longer repayment period
It is logical that by extending the repayment period, the amount that we have to pay back to the lender increases. So many people try to take out loans for the shortest period possible. This is logical, but you can not overdo it too much. Let’s avoid situations in which the loan repayment plan will fluctuate at the limit of our financial capabilities. Let’s set a safe loan repayment time. We may pay interest amounting to one hundred dollars more, but we will avoid a situation in which due to the inability to pay too high installments, the lender will impose additional financial penalties on us or will take the property left as collateral.
We’re not a bank but we offer loans to borrowers with regular income. We also connect with investors on our peer-to-peer lending platform who invest in the loans in exchange for solid returns and their capital secured by us.