Finding the right money needs can be difficult. Because it may well be that the new bike costs DKK 10,000 or that the construction offer for the renovation in the home is estimated at DKK 30,000. But what if you are going on holiday and do not know the exact price? Otherwise, if you have 5,000 in the account, should that amount be set off?
There are a lot of questions and considerations one should make to find the right consolidated loan amount. In this article we will guide you on the road and make our best advice. It is especially important that you know the answer to these two questions.
Should the amount of the account be included?
The first question many ask is whether the existing amount in the account should be included. It can be really hard to know, because one cannot even clear the account, as ongoing and fixed costs must still be covered.
The boring, but only real answer is that you must have made a budget if you don’t already have it. It does not have to be harder than that, but it will give you an insight into your fixed and current expenses. You need to know how much money you need for spending before you know how much of the money in the account is actually available.
Example : If there are 13,000 kroner in the account and you at 11,000 per month including everything, it will be risky to take out this money. Conversely, if you have air in the economy, with eg. DKK 25,000 in the account. Here you can by yourself be cautious, easily offset 10,000 in your money requirement, without pushing your economy unnecessarily.
All in all, there is no general answer, but get a budget so that you can more easily assess how much of the money you can deposit in consolidated loan amounts.
Do you know the exact price?
The next question is whether you know the exact price of what you want to fund. If it’s a journey, you can only know it roughly. If it is a fixed object, such as a new bike, computer etc. then it is somewhat easier to handle.
The exact price will also help you clarify your money needs and how much a consolidated loan you need to apply for. In case you do not know the price, you should start by getting it clear. If you want to buy a physical object, you must, for example, have selected the model you want. A computer can cost anywhere from 5,000 to 15,000 kroner. Similarly with a used car, flat screen TV and whatever else you might want.
Then find out the exact price as the next, as it will set the framework for your money needs. Once you know this, you can assess whether your current account amount should be offset or whether the consolidated loan will finance the entire purchase.
But keep in mind that you should never borrow more than out needs, as it will only incur higher costs. Here it makes a noticeable difference whether you are seeking a consolidated loan of 10000 or a consolidated loan of 20000 kroner.