If we ask for a loan today, do we really know we will be able to repay it at this time?
To put the accounts in our pockets and clarify how many months are actually needed to give back to banks or credit institutions the sums we have requested is the Supermoney Observatory, which took as a sample the loan applications received by the comparison portal from March to September 2013. It turns out that it takes at least six years to “break free” from the weight of the loan.
It is not so in all of Italy, attention: that of the six years is only an average. Lombardy is the region where the loan is repaid faster, in about five and a half years, with an average of 68.61 months. The slowest to repay are the Sardinian debtors, which take up to 76 months, just under 6 and a half years. We are talking, for all regions, of medium-sized loans, between $ 17,000 and $ 18,000.
A positive result is given by looking at the differences between the surveys made at different times of the year, in which it emerges that if today the average loan repayment is 71.20 months, in March it was higher, 72.87 months. A figure that fell to 70.49 months in September. It is a signal that could perhaps give hope for a glimmer of economic recovery, because the debts are paid with the increase of the economic availability. But it is not said: because maybe new debts are contracted, of lower entity and of shorter duration in terms of time, to pay the old ones. To understand if it is good news or not, in short, we must wait to see what will happen in the coming months.
The definition of the duration of the loan is an element to be taken into consideration at the time of the request, in order not to risk falling into over-indebtedness and being literally overwhelmed by debts that are discovered too late that you are not able to pay. It is unfortunately a common situation, which perhaps leads to too much carelessness to contract other debts to pay the interests of the old, in an endless spiral. And it is a phenomenon that too often goes hand in hand with wear.
It is observed that this happens above all in the last few years: the economic crisis that began now in 2008 is lasting for a very long time, and pushes to defer and defer the exhaustion of old debts indefinitely.
It also happens because along with the production and labor crisis there is still a serious financial squeeze, less money circulates around. Both because credit institutions provide less loans than in the past, and because public bodies very often do not pay their suppliers according to schedule. The same happens with credits on overpayment fees, which are paid in very long times.
But if the situation is just described, we need to change our approach to credit.
In order not to run the risk of turning into a spiral with no way out – or worse, falling into the hands of moneylenders – it is necessary to make the right calculations of the repayment times of the requested loans , and to do this you need a financial education base . Which can be obtained by reading the portals like ours, which in the guides help you to orient yourself in this complex sector or by following the campaigns promoted by consumer associations.
You need to be realistic and honest with yourself, and sign only repayment plans likely.
When you are about to sign up for a new loan, you need to arm yourself with patience (and a good magnifying glass) and read all the documentation delivered carefully and carefully. It is a right we have, and we must demand that complete documentation be given to us, if this does not happen. The document to be requested, according to the law, is the one called “Basic European information on consumer credit”, which explains in the simplest possible way what the conditions applied at that moment are.
Another thing that is often overlooked, but which has serious consequences, is the non-payment of installments. If, even for a single installment, difficulties are expected in meeting the deadlines, never put your head in the sand. You must immediately contact the bank or financial institution that provided you with the loan, to find alternative solutions such as the payment in installments or the lengthening of the repayment plan.
Remember also that there are forms of protection to cover unpredictable events , such as the loss of income
When we talk about forms of protection to cover unforeseeable events , such as the loss of income, we should not think about too complicated and expensive insurance formulas. These are in fact policies normally used for particular forms of loan without guarantee, such as the sale of the fifth of the pension or microcredit. This type of insurance is designed to cover the risk that those who have a debt no longer (or have a reduced amount) earned income from resignation, bankruptcy, dismissal, solidarity contracts or redundancy payments.
Contrary to what one might think, then, it is a measure well seen by the banks, because the beneficiary is precisely the credit institution itself which thus does not risk seeing the debt not repaid and having to undertake the redemption process.
Another important aspect: the insurance can be activated at any time – therefore not necessarily when the loan is underwritten – and will cover the amount solely of the debt that remains to be paid, less guarantees and interest.