Borrowing

Buying a home is one of the first big financial decisions for many people. Before making any long-term loan obligations, it is important to consider the following.

To get a home loan, you need a stable income allowing you to pay monthly loan payments as well as cover all other costs (utilities, food and transportation, entertainment, etc.).

• Is your income sufficient to cover other costs besides your obligations?
• Do you have self-financing or can you make use of additional collaterals (e.g. KredEx surety)?
• Are you taking the loan alone or with a partner and how will you divide the obligations within your family?
• Are you prepared for the worst-case scenario (one of the partners loses their job or their income decreases temporarily, you break up, etc.)?

A lease will be helpful when you are short of money for buying a vehicle.

First use the calculator to identify the amount you can afford given your current incomes and obligations. Make sure you have the funds for the down payment.

Ask for offers from multiple financers to compare lease conditions and find the best solutions. The easiest option is to contact your home bank to get a primary estimated leasing offer and an overview of additional costs.

More on leasing

Leasing a car: 6 things to consider

When purchasing a car from a private person, you will become the owner of the car after the leasing period expires as you are paying the total cost of the car as a hire-purchase during the payment period. However, if the vehicle is sold by a company, you can choose between an operating and a financial lease.

• An operating lease is best for those wishing to choose a new car every couple of years. This way you will pay monthly for using the car and can exchange it for a new one at the end of the period.
• A financial lease is good for those wanting to own the car. This allows you to buy the car at a residual value at the end of the leasing period. However, you need to save the amount of the residual value during the leasing period.

The best option for avoiding financial difficulties is to constantly monitor your incomes and expenses.

Unfortunately, even with our best efforts it is not possible to foresee every situation; it may happen that our salary decreases and we are unable to fulfil our obligations.

If you feel like you are unable to manage your obligations, contact the bank in advance to find a solution. Avoiding late loan payments is in your interest as it is cheaper (agreement fees, processing fees, bailiff fees, etc. will be added later) and your payment history won’t include a dept, making it more difficult to get loans in the future.

You can talk to your bank about:

• Changing the payment date
• Using a grace period
• Extending the loan period
• Refinancing the loan

Don’t try to solve payment difficulties with an express loan or another loan! This will only make the situation worse.

• Let the people close to you know about any financial difficulties.
• Contact a dept counsellor to solve your payment difficulties.
• Learn about social benefits and services.
• If needed, apply for free legal assistance.