Smart indebtedness: what it is and how to get it

Can it be smart indebtedness? Although a priori the binomial may be a contradiction in itself, intelligent indebtedness, also called sustainable indebtedness, exists and in Astro Finance we will explain what it is.

Smart borrowing is one in which we borrow money to invest and not to spend; that is, we request a loan with the intention of recovering the borrowed money plus a reasonable margin. A good example would be to get a debt to buy a van. If we use that van in our work, to make deliveries or transport, in a way that gives us a return, it can be considered a smart debt. But if the van in question is used to go on vacation, then it is considered a dry expense.

Smart indebtedness is one with which we hope to recover the requested money, plus a reasonable margin

In this sense, we can also talk about intelligent indebtedness when it occurs with the intention of growing a business or improving a service to consolidate and strengthen it in the market.

 

Other forms of smart indebtedness

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However, there are other forms of indebtedness that can be considered intelligent or not, according to the interests and the form of financing, or the number of debts that we can accumulate. Starting with the latter, it seems obvious that the smartest thing is to have only one debt against several. Therefore, the best way to acquire smart debt is not to ask for any credit if we have another pending settlement. In addition, it is convenient to study well in what we are going to invest the money of a credit, since it is little advisable to borrow to buy a good of fast consumption, that later we will be paying for more time than we would like.

Something that is essential to call smart borrowing is to look and calculate the loan price well. In this regard, experts agree that in order to have a good financial health, the total payment of the letter of a credit (with interest, commissions, insurance and other expenses) must never exceed, under any circumstances 35% or 40% of our monthly income. It is necessary to ensure that this percentage is not exceeded in order to reach the end of the month with solvency, without the debt being a problem.

 

Monthly amount of the debt should not exceed 35% -40% of the monthly income

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Finally, but not least, we have to be very clear that hiring personal loans online means being responsible for your return. So the first thing to consider before going into debt is if we really need what we are going to use it for. It’s about asking yourself: In your personal situation, are quick credits convenient for you? If the answer is affirmative, we must have some certainty regarding income that will guarantee us the payment of the debt.

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