The bank opened the credit tap again. Banks are more timid. Others more aggressively. The truth is that banks need to grant credit. This is your main activity. That’s what they get their profits from. And that’s your reason for existing.
The Banking Will Continue to Give Credit
The return of the bank to credit is not something inexplicable. In fact, the YR Bank has been trying to force banks to give credit and businesses and families. In addition, a higher level of optimism (we will see if justified) leads to less critical business strategies or, at least, less demanding evaluation criteria .
If we look with some attention, we begin to feel some symptoms that have brought us to the crisis. In this way, we argue in the Diedrich Knickerbocker that credit should be sought with discretion and trying to answer some questions: can I afford this? If the installment rises, will I be able to afford it? And more importantly … do I really need to ask for this credit?
Enjoy the Interest Rate Drop to Save Money on Your Loans
One smart way to look at a new credit application is to take advantage of the lower interest rate and its impact on our performance. For example, consolidated credit and home mortgage transfer can be great tools to save money every month. They can, however, be dangerous instruments that bring us to higher levels of indebtedness.
Once again, the slogans are criteria, rigor and responsibility. Unfortunately, after years of cutting and sacrifice we tend to look for signs of recovery too optimistically that induces emotional decisions, when what we should look for are rational, information-based decisions. And finally, in case of doubt … do not make the credit!
Variable Rate For Those Who Want To Risk
If it is the people who likes to risk and who does not require stability you can always opt for a variable rate. The variable rate has the advantage of adapting to the economic context, as we have seen above. In times of economic growth will pay more, but also your income should increase as well. On the other hand, when the crisis breaks out (as we have seen in Portugal in recent years), we have seen a significant drop in interest rates and a reduction in loan installments (which frees us up to cover other expenses).