In today’s post we will discuss the issue of loan installments. Let’s discuss topics such as how to calculate a loan installment, which installments are the best and whether it is worth suggesting a loan installment. So I invite you to the first part of the entry.
What will my loan installment be?
Calculating the loan installment is not as easy as it may seem to everyone. Of course, I do not mean counting on foot – using credit calculators is not always good. In many cases, loan calculators do not have current loan offers and often add some margins to brokers. Therefore, to calculate the loan installment, it’s best to contact a financial advisor – he always has current offers. In addition, we can count on much more favorable credit conditions there.
Which installments are the most advantageous
As we know, we have 3 types of installments:
– decreasing installments,
– increasing installments,
– fixed installments.
Which of them are the best? There really isn’t much difference here when it comes to the amount of credit we will have to pay back. There are small fluctuations but nothing significant. It’s more about convenience in paying off your loan. For people who are sure that they will earn more in the future, they can afford increasing installments and people who currently enjoy high earnings choose decreasing installments, which in future will pay smaller installments. Despite this, fixed installments are the most popular so far in repaying loans.
Fun fact: remember that the fixed loan installment will change from time to time. This is because the level of interest rates, inflation and several other factors that directly or indirectly affect each loan installment change.
Does low credit installment mean a good offer?
Many people ask themselves this question. Many of them also find this very popular marketing trick used by banks: the lowest installment loan, the lowest installment guarantee, etc.
Is a loan with such an installment cheap? Well NO. Loans with the lowest installments mean an extended repayment period. In turn, the extended repayment time of such a loan means a greater amount of loan to be repaid. So choosing the lowest loan installments we pay the largest loans. Therefore, if we can afford, let’s choose the shortest repayment time – installments will be higher, but the total loan repayment amount will be the lowest possible.