Many consumers use the opportunity to finance their long-awaited dreams or unforeseen needs through an installment loan . This is completed at the moment of application and grant on certain terms . These conditions include, but are not limited to, the interest rates that are current at this time. These interest rates can be fixed on some loans. However, this only happens for a certain period of time and then the corresponding new interest rates apply. The end of the fixed interest period can increase the cost of the loan and thus also the financial burdens to be settled. As a result, the borrower may no longer be able to meet its obligations. This can mean private bankruptcy.
If the consumer calculates the installment loan , then he should make sure that the appropriate bank creates a repayment plan until after the fixed interest period. This plan can be calculated with forecasts of the amount of interest to be expected. With the aid of the repayment plan, the person concerned can decide whether he can afford the installment even after the new interest rate has occurred, or whether he would prefer to withdraw from the loan .
If the consumer wants to calculate the credit himself, then he must also take into account the resulting fees. These are costs for processing and any cancellation insurance, which will be announced by the banks. These should be included in the calculation so that a real payment statement can be made. The respective fees are always calculated according to the amount of the loan and can be calculated exactly. If the consumer does not know exactly what costs are charged by the bank , then he should seek appropriate advice in order to plan an exact repayment . In this way, the borrower can prevent him from being surprised by increased costs.