If you are thinking of asking for a loan, you probably have a need or a special project in mind, so we tell you the method to calculate the ideal amount for a loan.
The best way to deal with an emergency is to avoid compromising on commitments that you cannot solve, so one of the formulas that can help you know how much you can ask for is the one used to know your ability to pay.
Method to calculate the amount for a loan
First of all, you will have to write down your income, that is, the total money you earn, including everything extra that has a periodicity.
This will have to subtract your savings, minus your fixed expenses. These refer to all the expenses you make month by month such as the payment of electricity, telephone, rent, tuition for your children, any credit you are paying; In short, everything you dedicate part of your income.
You will also have to consider some variable expenses
Depending on how often you have to pay them. Once you have these items you will have an amount left over; This is called payment capacity or borrowing capacity.
You can apply this formula whenever you have decided to apply for a loan. It will help you not to over-borrow and know your limits, which in the end will prevent you from compromising your income. And how is the loan calculated? Very easy: the amount of your borrowing capacity is multiplied by the number of months or weeks you plan to pay your credit and voila, the total amount is what you can ask to avoid over-indebtedness.
Remember that it is not advisable to pay debts with debts
It is a solution that will finally only be a kind of tunnel in which you will not find the light, because there is no way for you to meet your payments, so they will start to generate interest and you will be worse than when you started.
Credit is an excellent ally and a personal loan can be a way to grow, however, using it without limits and without making a previous budget can lead to an over-indebtedness that will cost you a lot of work out.
It is also important that you do not commit too much, badly managed debts can become a snowball that grows out of control and will be difficult to stop, especially if you did not have the precaution of calculating if you could pay it as established in the contract You signed with your grantor. It will stain your credit history since it will begin to observe delays, and when you decide to apply for other credits, it will not be easy to access them.