Personal loan prevention: what precautions to take?
Consumer credit is a project that engages you, sometimes over several years, and should not be taken lightly. Because the risk of over-indebtedness exists, it is important to prepare your project upstream. The point on the precautions to take to subscribe a consumer credit in all serenity.
In the same theme
- Estimate a personal loan
- Auto credit: immediate response
- Consumer credit comparison
- Ask yourself the right questions
- Evaluate your repayment capabilities
- Understand your contract
- Noncompulsory but recommended insurance
- Compare to find the best consumer credit
Ask yourself the right questions
The first precaution to take: do not go headlong into a personal loan. It is better to ask the right questions before the project to avoid making the wrong choices. Determine well:
- The type of consumer credit that you want to subscribe: personal loan, assigned credit, credit without proof …
- The type of institution in which you wish to subscribe: bank, credit institution …
The advice may seem obvious, but it is important to think carefully about the need for your personal loan and not to choose this option automatically. In some cases, it may be more prudent or advantageous to favor savings or postpone the credit.
Evaluate your repayment capabilities
A personal loan is a commitment between two parties: the institution gives you a sum of money, which you must repay by monthly payments with interest. Thus, to be able to assume your obligations, you must carefully evaluate the conditions under which you can subscribe to credit consolidation.
So, it’s important to have a clear idea:
- The amount you want to borrow;
- The amount of monthly payments that you can pay every month;
- The length of time you want to commit.
- Your income, expenses and other potential credits to assess your borrowing capacity.
In short, before embarking on a personal loan, it is necessary to correctly calculate the weight of the credit on your budget and to be certain of your solvency.
A consolidation credit calculator is an ideal tool to prepare your project! The simulation will allow you to get an idea of the best Roxanement solution for your consumer credit.
Be aware of the risk of over-indebtedness
Preparing your consumer credit application is essential to avoid over-indebtedness. If you commit to monthly payments, an interest rate or a duration that is not suited to your situation, you may not be able to meet your debts.
Understand your contract
Another precaution that goes without saying but that is important: before signing your personal loan offer, make sure you have read and understand your entire contract. Once your signature is affixed, you will not be able to come back to the terms of the contract, hence the importance of being in agreement with all clauses.
Any credit offer must mention:
- The identity and address of the lender and the borrower;
- The type of credit (credit allocated, personal credit, revolving credit …);
- The amount of the credit;
- The conditions for making funds available;
- The duration of the contract ;
- The amount, the number and the periodicity of the deadlines;
- The APR, or annual percentage rate of charge, and the type of rate (fixed rate? Revisable rate?);
- The identity and address of any bonds;
- The existence of the right of withdrawal;
- The means to repay the advance credit and the means of termination.
Please note that you have a withdrawal period of 14 calendar days from the signing of the contract. If you change your mind, you can reconsider your decision during these 14 days.
Noncompulsory but recommended insurance
If you take out a personal loan, the law does not require you to protect yourself with credit insurance (or creditor insurance). However, it is strongly recommended to take out insurance for your consumer loan, for several reasons:
- On the one hand, because many credit organizations will refuse to give you a personal loan without this guarantee;
- On the other hand because depending on the level of protection chosen, the borrower insurance protects you in the event of death, illness or disability or loss of employment. Without this insurance, you could find yourself in a very difficult situation in the event of a problem.
You do not have to subscribe your borrower insurance with your lender! You are free to choose credit insurance from another organization if it is more interesting for you.
Compare to find the best consumer credit
To find the most suitable personal credit for your budget and needs, compare offers online! It’s not about prevention, but good advice to find the best loan and engage in his contract with peace of mind.
With a consumer credit comparator like, all you have to do is fill in some information about yourself, your project and your financial situation to access in just a few minutes the consolidation credit quotes available for your profile!