1. Keep an eye on your budget
It can quickly happen that expenses exceed revenue. Anyone who supplements fixed monthly costs with special expenses and then takes out a loan can quickly go into debt trap. Usually it is the small expenses like membership fees or subscriptions that are forgotten and increase the expenses unexpectedly.
2. Think realistically when borrowing
If you want to take out a loan, you should consider the future rising cost of living. Never plan too tightly, but always leave a buffer for expenses that you may have to face.
3. Note the credit card limit
Do not overdraw your credit card, as the default interest is often even higher than for a overdrafted current account. Have the credit card balance cleared at the end of the month. With longer intervals, credit card holders often lose track.
4. Pay in cash
Pay in cash whenever you can. The reason: you keep a better eye on your expenses, even with large amounts. The debits from the account or credit card are not directly visible and are often an unpleasant surprise at the end of the month.
5. Save money
If you have money left in a month, don't just spend it. Make provisions for unforeseen purchases or sudden additional expenses due to defective household appliances. You can also set up a separate account and deposit a fixed amount there every month.
6. Do not use loans for short-lived goods and products
If you take out a loan, please use it to finance only long-term purchases. The goods or products acquired with it should have a longer lifespan than you need to repay the loan. Don't finance vacation trips with a loan!
7. Do not choose too long terms
The longer a loan runs, the higher the interest rate. This means that the loan will become more expensive. If you only have a few euros available for repayment in a month, you better stay away from a loan and save yourself on the desired purchase.
8. Do not choose too short a runtime.
The opposite can also happen and the term of the loan is chosen too short. Then the monthly charge is very high, there is more of a risk of late payment. High default interest and an entry in the ZEK threaten.
9. Rethink spending
Some purchases do not have to be, even if they are tempting. It is better to forego some purchases and not be at risk of overindebtedness. Maybe you can buy the dream product a little later with your own saved money?
10. Seek debt advice
Do not be afraid to go to debt counseling. This can be found in 37 locations in Switzerland and helps you to balance your budget. This is often not possible on your own.
If you want to take out a loan, you should check the offered conditions carefully. Here you can get the personal loan in Check credit comparison and find the best offer for you!
