Know Your Budget
You don’t want to get a loan that has such a high monthly payment that you are unable to meet the needs of your household budget. Sit down and figure out all of your expenses and income to determine the amount you can afford for your loan payment. Include major expenses like rent and automobile payments, as well as smaller expenses such as utility bills.
You can calculate your budget the old-fashioned way, with a pen and paper, or use modern apps on your smartphone. There are also computer programs that make budgeting a breeze. If you have no clue how much your monthly expenses are, save all of your receipts for one month and then add them up. This can give you an idea of the amount you spend each month and how much room you have for a loan payment.
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