The end of the year is approaching, the celebrations fall one after the other like dominoes with the threat of leaving us with no money to start the new year. The last three months of the year represent a strong outlay for families because we have to pay for the expenses of the celebration of the dead, Christmas, the new year and the day of kings, not to mention the anniversary of the revolution or the day. of the virgin. If on these dates a birthday or an important day for the family is crossed, things can get very complicated.
Not having a plan of our consumption and a financial backing to make these disbursements is what takes us towards the tortuous path of the January slope. For this reason, it is essential that we know the financing opportunities that exist in the market; requesting a payday advance https://citrusnorth.com/payday-advance/ to cover the cost of a holiday can be a perfect solution to avoid running out of cash when 2019 arrives.
The first thing we have to know is that the credits are a service and that, like any other service, they have a price. That is why when we ask for a loan we pay more than what we received. The interest is the cost that we cover for a financing. To understand it better we can compare it with another service, say for example a meal in a restaurant. A breakfast in an inn, for very cheap, costs us 35 pesos, and from there up. If we analyze the cost of the ingredients, we can realize that we pay much more than they cost.
This is so because what we pay is the service: the preparation, the presentation of the dish and even the cleaning of dishes and cutlery. A financing is similar, to have the sum of money we want, we must pay for the service. Although it seems that we are paying more than what we receive, in reality, what we get is the possibility of not running out of money and covering a heavy expenditure in manageable monthly payments. In addition, there are other elements that we must consider to live a quiet life economically speaking.
We must be aware that a loan is a very useful financial product to face our economic commitments. Why? Because it allows us to defer our expenses. Let us suppose that the expenses of the December festivities represent a total of approximately 40,000 pesos. Covering this expense at once can cut our liquidity and make us vulnerable to an emergency. Because of this financial oversight, many families pledge their assets in January and February because they do not have money to pay tuition, household services, day-to-day transportation, and other similar expenses. However, we must know that this does not have to be the case.
A basic financial education, that is, knowing how to take advantage of the financial services offered, can give us peace of mind to pay our debts and expenses without complications, as well as making it possible for us to achieve the goals we set for ourselves. If those 40,000 pesos are not spent at once, but we pay them in 9 months, we would pay around 5,000 pesos a month if we take out a nine-month loan. We keep our ability to pay, we have liquidity and we can make the party we dream of.
It is important that we consider what our payment possibilities are and what is the amount that we can borrow. In order to know this, it is necessary to prepare a budget, an account of what our income and fixed expenses are for the year. In this way, we will be able to know which is the best credit for us. Venturing with a loan without knowing if we can pay can cause us to lose control of the situation and end up paying many interests.
We must understand that this is not a problem of the bank that has lent us, it is our responsibility to be certain that we can pay the months we have contracted, the excessive payment of interest we can avoid if we comply with the commitment we sign. In this sense, it is vital that we know how much we can pay, based on this information we can ask for the credit we need.
To analyze our ability to pay we must keep in mind how much money we generate and how much we need to cover our fixed monthly and annual expenses. In this way, we can know how much money we have available per month to pay the installments of a loan.
Having this information is essential to make an appropriate decision and request a loan to pay the expenses of any holiday. Venturing to borrow without knowing if we can pay is a fatal idea that can leave us an unpayable debt, a lot of anguish and the impossibility of requesting loans in the future, so we must be aware and responsible with the actions we take. A loan can be a very useful financial tool, but we have to know how to use it.
Imagine that an important party is approaching, your daughter’s birthday, Christmas dinner or the day of kings. What can you do? You can take all your savings from the bank or from where you have them, pawn your jewelry and pay off the total cost of the party. You might think that you will not spend more than the bill and that you will not be in debt to anyone. Yes, you are right, but you would also run out of money.
Now think, what will you do when you have to pay re-enrollment to your children’s school, car service or some other heavy expense? Surely, you would find yourself in a difficult situation and you would have to make complicated decisions, not to mention the stress to which you will be exposed. In this lies the importance of making timely financial planning, to avoid headaches and desperate measures.
Now think of the following scenario. You requested a loan for your daughter’s birthday party, you will pay less than 4,000 pesos a month for the next six months and you will not have to worry about the regular expenses that you have to face because you had already contemplated them. You gave your daughter a party that you always dreamed of, you have fulfilled your financial commitments, you are calm because you know that you are a solvent person and have known how to take advantage of the financial tools you have at your disposal. A loan can help us pay the expenses of a celebration without suddenly having to pay a large amount of money, and this allows us to lead a more peaceful life. Know the advantages of requesting a credit for small amounts.