Just before applying for a loan to buy a vehicle (new or second-hand), it really is worth stopping to think for the moment about fixed expenditures and possible over a complete month. In this way, it will be more clear how much money will go to the financial debt to be incurred. In this way, exactly our borrowing capacity is in fact obtained.
To put it briefly, it is an essential factor in understanding our payment potential plus knowing how to cover short-term financial obligations. Therefore, financial knowledge will be welcome for a day nowadays.
What is the capability to pay?
This is the optimum amount of debt without endangering the financial integrity of individuals at any time. According to experts, between 35 and forty percent of monthly income. These are calculated by subtracting total fixed income.
For this reason, it is essential in order to calculate how much income plus expenses are produced 30 days by month. An example of a set expense is the letter from the mortgage, payments in grocery stores and food or the expenses of our children’s school. For this must be added the adjustable expenses, in holiday intervals or events, for example.
How to measure indebtedness?
After knowing the quantities, income expenses are deducted. The result must be multiplied simply by 0. 40, that is, forty percent. The remaining figure is the cash that can be used for debt, that is for the car loan, which will match the monthly bill. With this easy method, how to know our borrowing capacity is the simplest.
Let’s demonstrate with an example: starting from an income of 12, 000 pesos, you can allocate a maximum of four, 000 pesos to financial debt. Taking this step in advance can avoid many subsequent headaches.
Financial information, key to success
In short, a sufficient percentage should be allocated to the debt as to not interfere with the rest of the monthly costs, both fixed and ultimate. Otherwise, we would be residing above our means plus it would be very difficult for us to reside day to day without depriving ourself of essential expenses.
In addition, in the event that the previous debt has already been sustained, it is advisable to write off this particular first one in order to encounter the second one under ideal conditions. Our peace of mind should prevail in any case.