You have to be able to afford credit. But how much credit can you afford? We calculate it!
Your credit budget: How to calculate correctly!
When you take out a loan, you have to pay a monthly installment. This rate must fit into your budget, such as the rent, the phone bill and all other expenses as well. To calculate your personal “credit budget”, you must pay for revenue and expenses.
Revenue and expense account
How to calculate your earnings:
The revenue side is relatively easy to determine. Determine how much your boss sends you monthly. Reduce the income for the calculation to really monthly incoming amounts and leave out irregular incomes of part-time jobs, overtime, Christmas money, etc.
How to calculate your expenses:
To calculate your expenses, you should use account statements – and not just last month, but last year’s. Some issues, such as Rent, telephone or electricity accumulate monthly. Other costs are charged only quarterly – z. B. Account fees of your bank. Other costs appear only once a year on your bank statement – eg. For example, the premise for accident insurance. Convert erratic expenses into monthly costs by For example, divide once a year by twelve.
So much credit can you (really) afford
Your loan budget results from the regular free difference between income and expenditure. In this difference, the loan rate must fit. In fact, your loan budget is even a little smaller, because you can not plan on earning 100% of your fixed-income income (which will later include the loan installment). Certainly not over a period of years. Allow yourself enough space for spontaneous purchases and unexpected expenses!
Knowing the rate you can afford, you almost know how much credit you can afford. What is missing now is term and interest rate. An example: You have determined a comfortable monthly free space of 200 USD. Your interest rate will be approximately 5% and you would like to have the loan paid off in three years. Then you can currently afford 6,685 USD loan.
And so that you do not have to calculate everything by hand, we provide you with our practical online calculator – you fill out without obligation and anonymously and we tell you exactly how much credit you can afford can!