Responsible borrowing – fast credit and others

Borrowing responsibly – we hear it every day. However, there are different types of credit, so “responsible borrowing” may not be responsible, for example, by applying fast credit conditions to other loans. Therefore, in this article we will try to compare fast credit borrowing strategies with those that could be used for other types of credit.

 

Quick credit versus other types of credit

Overdrafts

credit problem

Overdraft: Overdraft is a short-term loan, usually in small amounts, that is issued to you when your credit card runs out. It is issued by banks based on your monthly income. Overdraft is quite disadvantageous – although it is possible to take out a quick loan without interest, overdraft will not only pay interest, but the bank will withhold quite a lot of money for issuing it. Instead of an overdraft, we recommend using a quick credit.

 

Consumer credit

Consumer credit

Consumer Credit: A consumer credit is a shorter term loan that you can use to make a bigger purchase, renovate a home, or go on a trip if you want to challenge your destiny. Consumer credit is usually more expensive – not at a percentage but at the pure amount level – than a quick loan. Recommended if you need more money; it is also advisable to borrow it from a bank where you can get a better interest.

 

Other (pawn shops)

pawnshops

Others (pawnshops): Pawnshops are safer in the sense that you can lose a good but the debt has no potential to get much bigger. True, when you give up property in pawnshops, you both risk divorcing and paying a certain amount of interest, as opposed to the first interest-free loan you borrow for the first time.

As you can see, with all types of credit there is a risk of falling into debt. Pawnshops would be the exception, but any other type of credit carries with it the risk. With fast credit and consumer credit, security is better than with overdraft because you know the final amount of your credit, your monthly payment, etc. ) than consumer credit and fast credit, then keep in mind that you may be influenced by the ease of access to these types of credit. Borrowing responsibly means trying to take into account your own psychological state, not just mathematical calculations – as it may happen that even a credit that is payable makes life a hell of a kopeck count.


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