Month: October 2019

Why do they charge me commissions and expenses, if I already pay interest?

 

My friend Joshua has just taken out his first credit card . He was excited and bought that sound equipment he always wanted. You have divided the payment into 4 parts to be able to afford it. A few days ago Joshua got his first statement and oh surprise! Not only did the payment of the first installment come to him in payment, but other expenses that Joshua does not understand, and that Joshua did not know that in addition to the interests of his purchase, the bank would also charge other fees and expenses. I explained to Joshua why the bank made these charges and what they meant so that he would keep that in mind the next time he used his pretty credit card. You know what I said too!

 

You pay the bank for the service it offers you

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The purchase in installments is a benefit that banks offer you when you use your credit cards . The additional charges that appear in the statements of your cards are not cost overruns, but necessary charges that are made for the additional services provided by the bank and covering personnel, administrative, etc. expenses.

 

All charges made to your card and that are additional to your debt and interest are justified and are regulated by the SBS.

Transparent charges

We ourselves can enter the bank’s website and access online all the charges that it makes us additionally in our statement. You can also request them at the bank office or by phone.

 

Not all banks charge the same

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I told Joshua that not all banks charge the same fees and interest. That’s why I have my credit card with the bank that charges me as little as possible. That way I don’t unconsciously affect my personal finances . In addition, I also told him that comparing is the key to choosing the best financial institution, there are even banks that do not charge commissions than others do.

Read your bank contracts well

An additional fact that I left to Joshua was that the banks can change the amounts of their commissions at any time. He knows now that this is mentioned in the contract he signed. It is important to read all the documents we sign to avoid surprises of this kind.

Joshua now knows more about the charges for commissions and expenses that his bank makes. Now you will evaluate if you should continue with this entity when you finish paying your debt. Discover how much the bank in which you are too suits you!

 

 

Is it worth borrowing money from your family? – Family Loans

All of us may sooner or later find ourselves in a situation where they need to borrow money. What to do in that case? Is it worth borrowing money from your immediate family?

We will try to answer these questions in this article. A loan from a family often seems like a natural choice, but contrary to appearances, it is not without flaws. On the other hand, a non-bank loan also brings additional benefits.

Disadvantages of family loans

Disadvantages of family loans

First of all, you have to admit that you are in a difficult financial situation. There’s nothing wrong with it. However, some people do not want to add more worries to their loved ones, so they prefer to keep such information to themselves.

 

In other situations, on the other hand, people know that asking for a loan would involve complaining and criticizing. Many people may simply not feel comfortable when borrowing money from their family. All this means that borrowing money from a family is often not the best idea.

Why is it worth taking a loan yourself?

Let’s consider why you should take out a loan yourself. Contrary to appearances, this solution brings a number of advantages. Below are the most important of them.

 

Self-reliance

When you take out a loan yourself, you become independent. This is especially true for young people who are just entering adult life. Of course, a convenient solution in this situation is borrowing money from the family, while a much more mature idea is to take out a loan yourself. In this way you develop positive habits. You know that you can count on yourself and learn to pay your debts on time.

 

Building a positive credit history

Building a positive credit history

We wrote about it in one of the previous articles. Non-bank loans allow you to build a positive credit history. Thanks to this, if in the future you try to take a larger loan, e.g. for a house or flat, it will be much easier for you to apply for it.

 

Low cost of non-bank loans

Low cost of non-bank loans

Often, when you decide on a short-term non-bank loan, you do not risk high costs. Many companies for new customers have a promotion in which the first loan does not involve any costs – you can borrow several hundred zlotys and give back exactly the same. It is noteworthy that for short-term loans, the cost of the loan is usually low. If the situation that caused you to need money is unusual, then you probably do not have to worry about the costs, because they will range from a dozen to several dozen zlotys.

 

Of course, you must remember that there are various companies offering non-bank loans and if you use their services, read the terms and conditions carefully. If you decide on our offer, on the main page we present the conditions for obtaining the loan in a simple and transparent way.

 

Summary – is it worth borrowing from a family?

A lot depends on the situation you find yourself in. Of course, this is one of the safer solutions, but is it really the best? Deciding on a non-bank loan you incur small costs and the risk is also small. You just have to give back your money on time. By the way, you are building a positive credit history that will definitely be useful to you in the future. At the same time, you must make the final decision yourself. It is worth remembering that a family loan is not the only solution.

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