When is the ideal time to take a personal loan?
There are moments in life where we would like to buy something, remodel our house or solve a particular situation and we do not have the financial resources available to do so and that is when that little voice inside us comes to us that asks us And if you take a loan ? To which we kindly respond, yes, it is a good idea. Is that the ideal time to apply for a loan? Yes and no, everything depends on several factors, such as:
1. Is it really a need or a wish?
Learning to differentiate between need and desires is essential to make this decision and know if it is the best time to do so. It is a wish when if the loan is not approved and your situation does not change at all, for example, maybe you want to buy a new computer, but if the loan is not approved, nothing happens, you can continue working on what you currently have .
2. You may not have requested personal loans
But you do handle other debt products, such as credit cards or have a vehicle loan. Given this scenario, you must determine your current debt ratio and know if you can assume a new financial commitment; To know what your current debt ratio is, you must add all the commitments you currently have in installments (the money you pay monthly for those debts) and divide it among all your fixed income (without counting the variables)
Monthly Debt / Fixed Income x 100 = Indebtedness Index
RD $ 18,0000 / RD $ 38,0000 x 100 = 47.36%
If your debt level exceeds 40% (as is the case in the example) it is not recommended that you assume another commitment for now.
3. Consider your job stability when thinking about asking for a personal loan
If you are new to the job, wait at least 6 months and if you have the prospect that the company you work for may undergo some changes in the short term, you better wait.
4. If what you are looking for is really a necessity
You have a low indebtedness rate (less than 40%) and your job and income perspective is favorable, it is a good time to ask for your first personal loan. If it is a loan to acquire a good, such as a computer, you can apply for two years, but if it is to go on vacation or make a minor purchase, it is best to apply for a maximum of 1 year.
Personal loans can help us solve immediate situations, their nature should not be seen to meet momentary needs if you want to have healthy finances and honor your commitments on time.