Borrowing

Borrow only what you need

Avoid taking on more debt than you need. Borrowing should be based on your actual needs and ability to pay back what you borrow not the maximum amount a lender is willing to let you borrow.

Understand the terms

Always read and understand the terms of your loan. including interest rates, fees, and when you are expected to pay it back. Doing this means you’re fully aware of the cost of borrowing.

Plan for repayments

Make your repayments fit your budget without stretching your finances too thin. Consider setting up automatic payments to avoid missed deadlines.

Set a clear purpose

Before borrowing, have a reason for why you need the funds. Borrowing can help you get the things you want in life, such as education, buying a home or to pay for important things when you need them.

Know your credit report

Your credit report shows you any lending you have that has a value of more than €500. It also shows who the lending is with, how much it’s for, for how long you’ve borrowed it and when the next repayment is due. It includes current and past loans. The Central Credit Register shows information for five years after the last payment has been made and/or the loan was repaid.

Create a repayment plan

Establish a detailed plan for repaying the loan. Calculate how much you can afford to pay back each month without affecting your other financial obligations.

Avoid late payments

Late or missed payments can effect your credit and mean extra fees. Set up reminders or automatic payments to make sure you never miss a repayment deadline.