So you should distribute your budget if you plan to apply for a loan
Making the calculation of the distribution of your money is a very important point that must be taken into account before applying for a loan.
The amount and credit
However, many do not give it importance and prefer to select the amount and credit without taking into account their situation. Then, in several cases, they end up facing debts that they cannot pay and fail to comply with some of their obligations.
What should you do so that this does not happen?
Basically, a list of your income and expenses. Once you have it, organize the expenses and also think about the months to come, if any special occasion will require some extra outlay, for example, the beginning of the school year. Once you have done the respective subtractions you will have an idea of how much money you have left.
Apart, consider that at most, you should allocate 30% of your income to the payment of debts, and this includes not only the payment to credits, but also to your card. So, if the money that is left is greater than 30%, it does not mean that you should spend it all, but that the limit is that percentage. In either case, it is best to select an amount that is not at the limit and that will be the monthly fee you must pay.
This information can be obtained from the bank or financial entity of your choice, but also from your home, when using web simulators such as Sherlock Holmes.
Why is it important to do this?
Basically, because it lets you know how much money you need and how much you can pay monthly, and having that information there will be no mistake in choosing the correct deadline.