Growing up may be a lifelong dream for us when we are children, wanting to have the freedom to come and go as we please, to pay for things as and when we see them without having to wait and to be ‘in control’ essentially of our finances.
What we don’t realize is, as much as we hear our parents telling us which we consider being another ‘speech’, is that adulthood is not always as easy as it may look. For the small group of wealthy, not needing to worry individuals in the world this may be the case, but for the worlds’ majority, it is not.
A reality check.
Beginning our first paid job as we reach 17 or 18 years old and knowing what it takes to ‘earn’ your salary is the initial step I believe in understanding responsibility. You know that if you want to earn a certain amount of money at the end of the month you are going to have to put in the man-hours, pick up those extra late-night shifts if need be to reach your goal, but at the end of the day, you will appreciate it that much more than if it was all simply given to you.
My children don’t particularly enjoy chores, I’m not sure too many children do, but they do understand that once it is complete they will get something in return. It may not necessarily be money, perhaps they want to stay over at a friends’ house for the weekend, or to go see the latest movie at the cinema, either way, the work needs to be done first.
So when they reach adulthood and have an apartment of their own with bills popping in through the letterbox like unwanted gifts, they know it is time to work.
So you’ve done your schooling and tertiary education, you have managed to land a decent-paying apprenticeship not too far from home, and found a quaint little flat that is just big enough to not feel claustrophobic. Being an adult seems to have begun.
Your parents have always told you to save as much as possible of your earnings while you still have the energy to work crazy hours and build up a deposit to put down on a property of your own. It needn’t be a mansion or a 5-bedroom house, to begin with, but it will be ‘yours.’
The same goes for buying a car. Sure we all start with the hand-me-down donkey (if you’re lucky enough to have an older sibling or grandparent not needing to drive any longer) and we work our way up the vehicular ladder as it were. Then when the time comes you can put down a substantial deposit, drive off with a new car, and your monthly repayments won’t cost you an arm and a leg.
Getting help with either of these for some people can be overwhelming, it is all good and well to have the deposit to hand, but the rest of the bill is still going to need to be paid, and this is where a ‘loan’ comes in. And why folks can become anxious, not knowing the processes or procedures and essentially never taking the plunge.
Finding a reputable and reliable lender is half the work when looking for a loan, the other half would be to make sure you are getting the best deal and rates on the market. An agreement where both parties feel they will come out with a win and the price is not extortionate nor too good to be true (the last thing we want is to find hidden surprises in the fine print tying us up financially for years).
What you do need to understand though is, what is a consumer loan, to begin with? Well, in simple terms without all the technical dictionary jargon – see here https://en.wikipedia.org/wiki/Loan for that explanation – it is the process whereby a bank or finance entity lends a sum of money to a person to purchase assets or other items as wanted, with the intention that the lump sum is paid back over time with added interest for the ‘gesture.’
A few factors contribute to a loan going through, let’s take a quick look at the top few in more detail.
- and timely with paying back the money, the higher your rating the more likely you are to get a larger loan. If you have any outstanding payments be sure to settle these before putting in a loan application.
- Salary. Lenders will undoubtedly want to see that you are earning and have been for some time a monthly salary, enough to cover the loan repayments as well as your existing expenses. This is easily shown by company pay slips and bank statements.
- Assets. This can be tricky if you are just starting on the property ladder or looking at a brand new vehicle, as most young adults don’t have assets in their names. Showing good financials and with the rate of your credit score it can still be done, also having someone such as a parent co-sign will give the lender added peace of mind.
Doing all the necessary paperwork and having everything in order, the last thing you need to look at is the interest payback rate you will get from specific banks. Ideally, you want to know you are in a safe and reliable company, not being taken advantage of, and this means doing your research.
Once you have taken the time to do your homework and have seen and taken notes on the average rates on the market, look for not just the “billigste“ or the cheapest, but something that also works for your budget and gives you leeway to pay back quicker over time should you come into extra money or receive a large end of year bonus at work. Contact. These will be your employers’ contact details. Naturally, the bank is going to do some background checks and confirm that the business you work for is sustainable and not looking like it is going into bankruptcy anytime soon leaving their money unpaid. They will also confirm you do work for them, the period of employment, and you as a person in general.
A final word.
Taking out a loan does not need to be scary if done in the right manner and with good intentions, people all around the world begin their greatest adventures and fulfill their dreams with a simple yes from a loan lender.
It will seem like a large sum at the beginning, but as you get involved in the process and changes happen and grow in your business venture and life before you know it the time will have passed and the loan will have been paid off.
Then all you need to do is enjoy and make memories in your paid-off home. This is a luxury not a lot of people can afford, and if you have the opportunity to do so then you should ‘seize the day,’ as the old saying goes.