Although it may not seem so to everyone, the economic situation in the Czech Republic is very good, incomes are steadily increasing, and interest rates on loans are not as high as before. Furthermore, loans are safer and more accessible. That doesn\’t mean that you have to take out a loan for everything.7] The fact remains that one in seven financial aid 
applicants
is in foreclosure
. And that is not a good thing.
People don\’t realize they have to pay back
Applying to banks has never been easier. Some allow people to borrow a certain amount of money without interest. However, many people no longer realize that they have to repay the loan they agreed to anyway. Many people have several different agreements, but must remit a certain amount to all of them each month. Many also cannot calculate how much they will end up paying. Eventually, they have to decide whether to pay rent, utilities, or the loan.
Vacation is a big draw
Travel is great. If you have the money. Many applicants clearly do not, and find it easier to go to the bank than to save their finances in a natural way. The latter is more cumbersome and many do not even have the ability to do it. In the summer, despite not being able to afford it, the application amount increases by up to $10,000 because of the family\’s urgent need to go to the beach.
Practical advice from any firmAny competent and fair financial advisor will tell you to think carefully. The key is to ask yourself two questions:
- Do I really need to borrow?
- Can I afford to pay it back?
If one of the answers is no, start looking for money in other ways; you may not see your dream vacation until a year from now, but on the other hand, you won\’t be on the debtors list and facing foreclosure.
If yes, choose the right provider. There are countless providers on the Czech market, but not all of them offer the best terms. It is better to compare online or visit several providers in person and ask them everything you are interested in.