A debt with debt is just an additional payment obligation for most people. It is neither special nor unusual. A well-thought-out loan never gives cause for panic. It is neither the beginning of a spiral of debt nor an incalculable risk. Living with more than one loan is the price for our corporate structure.
Credit with debt – how it works?
A loan despite existing debts is nothing more than a further debit to the account. Provided that the intake is sufficiently high and safe. Most people swim with the mainstream. The contentment that a Buddhist monk may experience is foreign to them. They are ready to work and want to reward themselves for their efforts through consumption. The latest technologies, beautiful houses and the new car are expensive.
Most can afford this standard of living only on credit. Your life is structured in such a way that the income is sufficient to save something and to pay the current obligations. They know their personal capabilities, but also the limits, and they are not exaggerating in terms of claims or borrowing. There is nothing wrong with this model of life, nor is it wrong. The credit with debt enables them to increase their personal wealth and live a satisfied life.
Don’t let problems arise from excessive debt
Not everyone manages to implement this concept of life permanently. It becomes problematic if the income cannot support such a life model. The alarm bells shouldn’t sound just when the loan is refused. Repaying a vehicle loan and still writing red numbers with the overdraft facility at short notice is not a bad thing. Nevertheless, the account has to recover. Only then is consumption possible again. If there is no self-discipline to compensate for the overdraft facility, a debt rescheduling loan can be very helpful, despite the debt.
An installment loan is significantly cheaper than overdrafting. A small monthly charge, in addition to the car loan, is easy to carry. The loan pays off again almost without restrictions for everyday life. The expensive overdraft interest is saved, and debiting at the beginning of the month ensures self-discipline. To ensure that the debt does not become a problem, the current account should only know black numbers, at least until the installment loan has been paid.
Use low interest rates and thus create freedom
As the example of the current account shows, the loan with debts can bring significant interest advantages. The best way to save interest, always with sufficient creditworthiness, is the Internet. The offers of the online banks are easily comparable and the cheapest interest rate offer is quickly determined.
Low interest rates give you financial freedom and make debt-based loans what they should be. – An additional charge on the account.