True, in reality, such as a situation is only possible if the solvency or creditworthiness of a potential client is not checked, because, for example, bank lenders do not issue any kind of loan that their monthly payment exceeds 40% of a person’s monthly income.
For example, if the monthly payment is 100 EUR, but the monthly income of a person is 300 EUR, then the loan is granted because 40% of 300 EUR is 120 EUR, but the monthly payment of 100 EUR does not exceed this amount.
However, if the monthly payment is 100 EUR
But the monthly income is 200 EUR, then the loan is not grantedbecause 40% of 200 EUR is 80 EUR, but the monthly payment of 100 EUR exceeds this amount. If we go back to the fact that credit payments can be higher than income, then we need to talk about fast credit and sms credit lenders, the experience shows that a large part of these non-bank lenders treat their potential clients as being relatively careless. and irresponsible.
If we compare, then non-bank lenders do not scrupulously evaluate their potential customer credit history and creditworthiness as bank creditors. Lending lenders justify this situation by saying that they do not risk large amounts of loans and repayment terms, so the solvency of their clients is not of special importance.
Potential customers themselves to assess their ability to borrow
They rely more on potential customers themselves to assess their ability to borrow and repay the loan. However, as a result of the regulation of national laws, this situation has improved considerably, the issuers of quick loans and other non-bank loans have improved the conditions for granting loans and improved the lending process, making it more stringent and more serious.
As a result of the non-valuation of the loan amount and the borrower’s creditworthiness, the borrower often becomes creditworthy because the amount of the loan issued is not adequate for the borrower’s income, therefore the monthly loan payment is also higher than the monthly income. In fact, the borrower is forced to live in a “minus”, ie if the monthly loan payment is EUR 210, but the monthly income is only EUR 200, then 10 EUR is still to be collected somewhere. Question – where? The only option in this situation is to increase income.
Income can be increased by cutting costs
Increasing existing workload, taking on additional workloads, finding a new job or additional work, creating passive income, creating a savings account, and many other ways. If you find yourself in such a situation as a result of your own and your lender’s irresponsibility, chiefly, don’t panic and never stop and stop making credit payments – think of all possible ways to increase your monthly income! to come up to this situation completely – do not rely on the creditor to assess your compliance with the loan, but rather to assess your own personal ability to borrow and repay the loan. Anyone, based on the desired loan amount and interest rate, is able to calculate the amount of your monthly payment and everyone knows the amount of your monthly income – can you afford it? If you can’t, don’t take out a loan if you can and don’t have any other alternatives, take out a loan and take all the possible risks.