What do you need to consider before deciding to take out a loan?

According to some documents and surveys, the number of Cambodians willing to apply for a loan seems to be on the rise. Some people apply for a loan with a clear purpose, such as to expand their business. Others have an idea to borrow money but do not have a clear purpose to do what exactly to bring them. Later financial crisis.

Therefore, Cambodiafinancialtimes.com, a website focused on the financial and economic sector in Cambodia, would like to bring some ideas to serve as a basis for You make the right decision.

What do you want to borrow money for?

You can ask yourself in advance what you borrow for? Borrow to increase income or create debt for yourself? The answer is that not all loans are debt consolidation. Loans can be good or bad depending on your usage.

If you use it for the right purpose, it will help you to earn more, but on the contrary, if you just borrow on desire. Without a clear idea, it will only make you more indebted.

A loan or credit that you will receive will create a debt for you is a loan that the borrower has no clear purpose of use.

Do you have the ability to repay?

After you have decided that you really need a loan, consider your financial situation to find out your ability to pay. How much can you repay the bank per month? You can calculate this figure by considering your average monthly income and expenses to avoid the risk of Reimbursement.

Why do you need to think about income and expenses?

It is very important to calculate in advance how much you will be able to pay in monthly installments to the institution you are borrowing because That if you know how much you can repay, you will be able to choose the right loan size for you.