Negative sides of the bank. Positive and negative sides of the loan. What does refinancing mean

Each person has his own opinion about loans, someone believes that having received money "forward" they can make the necessary expenditure and thereby reduce the time to achieve the goal, while others consider loans unacceptable.

For the most part, people who refuse loans explain their actions as a lack of desire to make monthly payments, pay interest, and generally be in debt.

Is it worth taking a loan? It is difficult to answer this question unambiguously, because on the one hand, loans are useful, and on the other hand, they drag you into a debt hole.

Of course, loans allow you to quickly achieve your goal, whether it is the purchase of a product or the opening of your own business. Getting a loan in our time is not difficult, and it is not at all necessary to submit documents on the amount of wages (for small amounts).

In addition, it is much more convenient for many people to pay off a loan than to save money. Firstly, not everyone can set aside a fixed amount, because. We all have extra expenses in our lives.

Secondly, in order to create a source of income (which will be used to repay the loan), start-up capital may be needed. When there is no money, but there is a good business idea and a great desire to implement it, a loan can be one of the options to overcome difficulties.

The negative side of credit

For convenience, we decided to divide the negative points into 3 points:

1. Interest. Given the interest that we have to pay, we buy goods at a higher cost. For example, buying a car on credit, the buyer can pay 1.5 times the cost of his car. Naturally, such expenses are a negative factor.
2. Responsibility. After receiving a loan, it becomes necessary to consistently make payments, and you need to treat them responsibly. In case of delays in payments, additional interest is charged, as well as credit history deteriorates.
3. Psychological condition. The presence of credit obligations affects the psychological state of a person. Psychologists say that stress is one of the most negative conditions, and in the presence of a loan, people often experience it.

If you are thinking about whether to take a loan, then you definitely useful information from this article. There is nothing wrong with loans, they really empower people, but at the same time, you need to realistically assess your ability to pay, as well as provide for the risks you are taking.

In this article we will consider the topic of loans.

Credit is a wonderful thing if you know how to use it, one person's credit will lead to financial well-being, and the other to depression and debt.

Is it worth taking a loan? - consider the pros and cons of loans and first go through the pros:

• 1. Credit is a great savings alternative - especially if we are talking about large purchases and in the long term. It turns out that the loan allows you to realize your goals much earlier than you could afford. But there is an important note here - your loans should be planned taking into account the family budget.
• 2. Fix prices y - as if freezing under the terms of the contract. You clearly know how much will be needed in order to pay this purchase. No one can guarantee that tomorrow the price of a given product or service will rise or fall, so this is an indisputable advantage, and it lies in the fact that you kind of freeze the price.
• 3. If there are any additional guaranteed payments to your income , for example, some kind of social payments (pension, scholarship or rental income, say), then you can undoubtedly use this to take out a loan, counting on the fact that you will pay the loan from these funds. For example, when I was a student, I took a printer on credit exactly according to this scheme, my scholarship was just the amount that was equal to the monthly payment on the loan.
• 4. If you took a loan and a purchase or service from it allows you to grow your career then this is the so-called good credit. Because sometimes we do not plan to purchase some item, for example, according to the specifics of work, you need to purchase a car, or you need to undergo some kind of expensive training to expand your business, loans will undoubtedly help in this.

This is all that I wanted to highlight in the pros of loans, and now let's move on to the cons:

• 1. For any loan, money is overpaid - here we can talk about completely different overpayment costs, and it will depend on many factors, for example, what type of loan it is: target, consumer, from a credit card, or lending in microfinance organizations, on how long the loan is, how much and on what What are the terms and conditions of a particular bank? All these factors will ultimately determine how much you overpay.

There is still one small nuance here, I call it "poor people's thinking." Very often it turns out that we first take a loan, and then we think about how we will pay for it, we hope that we will deal with the loan anyway.

• 2. Loans put a lot of pressure on the family budget in such a way that financially illiterate people, as a rule, do not plan their income and expenses, and of course purchases on credit. This is how they drive themselves financially dependent and into debt. It turns out that if you have a loan, you cannot get sick for a long time, you cannot go on vacation, change one job for another, because there are obligations to banks and you cannot take risks, because in case of any unforeseen situations you risk being in a very unpleasant situation when, in addition to the overpayment, you will also receive interest on the penalty. In this case, I strongly recommend that you keep a family budget.
• 3. If you took out a loan for entertainment , a very popular loan when newlyweds take out a loan for a wedding, in the hope that the guests will give them money and they will go and close the loan and still remain in the black. It is very naive to believe that this is exactly what will happen. Or you take out a loan to somehow stand out, update your wardrobe, buy a new gadget that is now very popular and you need to be in trend. It is just as stupid to take out a loan to invest in some dubious and risky investment instrument in the hope of making a fabulous profit and repaying the loan with it, and even being in the black. Such loans are called bad loans, and my recommendation to you is never take a loan to live beautifully, to "celebrate", and to invest in an instrument that you do not understand.
• 4. Mental torment - as a rule, when we close the next loan payment date, we are released for a couple of weeks, and after two weeks a very strong emotional pressure begins, because we understand that the next deadline for loan repayment is coming and we need to deposit some money into the account, and again, if unforeseen situations with money happened, say, a salary delay, then plus everything else, there will be pressure from banks, collectors, etc. It turns out that the euphoria from the purchase has already passed, but the negative aftertaste and emotional pressure will usually haunt you throughout the duration of the loan repayment, each time the payment date approaches.
• 5. Credit addiction - it turns out that in many families there is such a picture: there is a mortgage, there is a car loan, a consumer loan, several credit cards, etc., and up to 80% of the income goes to cover all these loans, which is undoubtedly a very strong credit dependence - this is not very correct.

Summing up, I want to note that credit is a wonderful tool if you know how to use it. If you soberly assess your financial situation, clearly understand from what means you will repay this loan, are ready to pay and overpay interest on a product or service, realizing that it will really solve your issue or help increase income.
I draw attention to the thinking of a poor person - if today there was such an opportunity to close loans, then most likely he would go tomorrow and take a new loan, due to the fact that he does not understand what the alternative can be and how to change the approach to thinking.

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Banks, in a highly competitive environment, make loans more accessible to consumers: more and more loyal loan programs are being created, and the lending procedure itself has become much simpler. For example, before 2005, in order to take out a loan, it was necessary to provide local registration, a certificate of official income, liquid collateral (real estate, vehicles, goods in circulation, etc.) and a down payment. Now, in many cases, loans are issued on the basis of a passport. At the same time, it cannot be said that consumer lending is developing completely without problems. On the contrary, the parties to legal relations are accumulating more and more claims against each other. Lenders are dissatisfied with non-fulfillment or improper fulfillment of obligations under the contract by individual borrowers, the number of which also increases with the growth of consumer lending. Cases of fraud on the part of individual customers do not cause much joy either. As a result of all these actions, overdue debts of banks are growing, which causes some concern not only for them, but also for the authorities, since history knows examples when in some countries this led to an economic crisis. On the part of consumers, certain and sometimes justified complaints are caused by the opacity of lending conditions, all kinds of additional commissions, not to mention the payment for the services of independent appraisers, the payment of insurance premiums, and so on, which greatly increases the cost of loans. It was this circumstance that raised the question of the need for explicit disclosure by creditors of the so-called effective annual interest, that is, the total price of a consumer loan for one year, which should be indicated as a certain percentage of the amount received by the consumer under a consumer loan agreement. If the agreement provides for the possibility of changing the interest rate or other conditions affecting the price (cost) of a consumer loan, the initial effective annual interest may be accepted as the effective annual interest during the term of the agreement. Meanwhile, it is interesting to note that these problems are usually not as acute when banks are engaged in non-consumer lending, that is, when they lend to legal entities and individual entrepreneurs, although in this case they also face defaults and the emergence of overdue debts. Apparently, this is due to the fact that the detachment of subjects involved in entrepreneurial activities is relatively small, and therefore their relations with lending organizations do not receive the same public outcry as is the case in the case of lending to an army of millions of consumers. In addition, due to the specifics of their activities, entrepreneurs are more financially literate than ordinary citizens. We summarize the identified shortcomings of consumer lending in table 3.1.

Table 3.1 - Negative aspects of consumer lending

Until now, the bill "On consumer lending" has not been adopted, which would have legal regulation of a number of issues that do not allow this type of lending to fully develop, in particular:

Increasing the financial literacy of the population, its ability to plan personal finances;

Protection of borrowers when communicating with banks, providing citizens with all the necessary information at the stage of concluding an agreement;

Preventing debt defaults and protecting creditors, including by collecting information, credit histories, increasing the effectiveness of collateral and collateral institutions;

Creation of a system for dealing with bad debts - collection agencies, effective judicial and enforcement procedures.

Let's take the same increase in the financial and, perhaps, legal literacy of the population, its ability to plan personal finances. No matter how many laws are passed, things will not get off the ground until financial literacy is taught in schools. It is at school, and not at the financial academy, because not everyone will get there. Everyone is already accustomed to the fact that our school very often loads children with knowledge that is too far from what they will have to face in real life, and at the same time does not form skills at all, without which it is quite difficult to manage in our everyday reality.

The borrower, if he had a certain financial culture, could well calculate the effective annual interest on his own, and he should do it, because bank employees, like all people, tend to make mistakes, if not in the calculation itself, which the computer does, then in input of initial data.

The reverse side of the legal support for the development of consumer lending is the protection of the interests of creditor banks.

One of the ways to protect their interests, as well as increase the responsibility of individual borrowers, is the development and simplification of the bankruptcy procedure for individuals as a guarantee of repayment of their obligations.

Until now, the bankruptcy of individuals is difficult to implement due to the presence in the civil procedural legislation of provisions that make applying to an arbitration court to declare an individual bankrupt practically unpromising in terms of debt recovery.

In particular, Article 446 of the Code of Civil Procedure of the Russian Federation provides for the inclusion in the list of property that cannot be levied under executive documents, residential premises and land plots, household furnishings and household items, livestock, and the like. Obviously, in the presence of these restrictions, the formation of the bankruptcy estate is problematic. And in this case, in practice, the bankruptcy of an individual, according to the current rules, is beneficial, first of all, to the debtor himself, as it allows you to write off most of the debts in case of insufficient funds from the sale of the seized property to pay them off.

The solution of the issues discussed in this chapter will increase the trust of the main subjects of consumer lending to each other, provide their legal protection.

We often receive various questions, one way or another related to lending. There are a lot of questions about mortgage lending. Today we will consider a question from Stanislav. He asks us what is more profitable - a loan or a mortgage?

In fact, this question arises very often and the reason is banal: a person wants to buy an apartment on credit, after which he begins to be interested in credit programs. For example, an apartment costs, say, 2.5 million rubles. This amount can be obtained both in the case of a mortgage loan, and in the case of a consumer loan. Therefore, I want to understand what is the best thing to do in order to save my money.

In fact, potential borrowers have little choice: in most cases, they have to agree to a mortgage. Why? As you know, when it comes to mortgages, the apartment that the borrower purchases is a pledge in the bank, and the bank becomes the mortgagee. This nuance allows you to take a large loan amount without attracting borrowers and without providing additional collateral. In the case when the bank is the mortgagee, nothing can be done with the apartment without the permission of the financial institution: not to rewrite it to a relative. If we are talking about consumer lending, then the same amount of 2.5 million rubles will not be issued by the bank just like that - it is necessary to provide a pledge or a guarantor, or even several at once. However, if there is such an opportunity, it may turn out to use a consumer loan to buy a home.

Now you yourself will understand why it is better to use mortgage lending. We have prepared for you a list of the positive and negative aspects of each of the two mentioned types of loans.

Benefits of mortgage lending

• Mortgage interest rates are usually lower due to the fact that this is a targeted type of lending. In addition, the bank becomes a pledgee, which reduces the risk of default on the loan.

• Long term loans. In some cases, a mortgage loan is issued for up to 30 years, in the case of a consumer loan - usually no more than 5 years.

• If you need to get a large amount to buy a home, you can attract family members as co-borrowers, thanks to which the loan amount increases.

• The maximum loan amount for mortgage programs is often much higher than the maximum amount for a consumer loan.

Positive aspects of consumer lending

• The speed of obtaining a loan and receiving funds on hand.

• Often it is enough to provide only a few documents for the bank to make a positive decision on the application.

• Less overpayment on the loan, since the loan term in this case is several times shorter.

• The opportunity to receive a larger amount at a lower percentage if the bank has an account or a salary card.

Negative aspects of mortgage lending

• Big payoff in the end. If you calculate the entire amount of the overpayment at the end of the debt payment, you can be very surprised - the borrower overpays 2-3 times the cost of the apartment, or even more. However, if you take into account inflation, it may turn out that the borrower will be in the black.

• Although the housing belongs to the borrower, in reality he cannot do anything with it without the consent of the bank.

• Quite a large package of necessary documents.

• High criteria for selecting borrowers, so it is quite realistic to get a negative answer on the application.

• Payment for additional services. For example, the borrower does not have the right to refuse payment.

• It is difficult to get approval if housing is purchased in the secondary fund.

Negative aspects of consumer lending

• Relatively small loan amounts, which are often not enough to buy an apartment.

• Usually higher interest rates.

• Short loan term.

• Large monthly payments if you take a loan of several million.

And what about, you ask? In fact, in the vast majority of cases, a mortgage will be more profitable for the borrower, whatever one may say. And yet in some cases it is better to use a consumer loan. When? For example, if the borrower does not have enough to buy a home, say, 300 thousand rubles. That's when it really is better for him to turn to the bank for help: he can pay the money quickly, besides, the bank does not become a pledgee.

Of course, the final decision is up to you. We recommend that you familiarize yourself with the loan programs in more detail and use the calculator for calculation.