When you borrow

As we have seen, debt is a delicate matter that should not be irresponsibly. As is popularly said, is "a double edged sword" because it used the best way to give the many advantages and economic benefits that will allow you to obtain goods and services that improve the final status of life the individual, but used carelessly can destroy the debtor into an abyss of bitterness and difficult problems to solve.

Then explore a number of circumstances in which they generally can borrow:

1. Endéudese only if you have positive cash flow, ie their income exceeds their expenses. Ask your bank or at the approximate monthly payment amount that will generate its debt, and ensure that all its debt payments do not exceed 30% or 40% of their net income (depending on whether you are conservative or not), I particularly I prefer not to exceed 30%. Remember to set aside 10% of that percentage when you have chosen to variations in interest rates, and also, do not forget to save two (2) or three (3) wages as a reserve fund in a savings account or instrument (as I keep it personal three (3) prior to debt. Most other circumstances by which you can borrow subordinated to that you have done what is specified here.

2. Endéudese where the government or central bank of the country regulate interest rates.

3. Listen to programs where opinion interview renowned economists, often giving them advice about what people should do in the short and medium term from the economic point of view. In 2005 and 2006, it was common to hear economists recommend to people that borrow in the short to medium term.

4. Read market signals. While this is not a completely accurate law tends to give satisfactory results and of itself, interesting. When you see many commercial advertisements on television or the press, banks offering loans to fixed rate for the first 12, 24 or 36 months, is because they believe or expect that interest rates are going down. By contrast, when banks are offering fixed-term instruments is because they feel that interest rates will rise. Now here is a rough guide to wait a bit in terms of future interest rates.

5. Endéudese short to medium term, when you consider that interest rates for credit will be below the expected inflation for that year.

6. Endéudese to acquire assets. If you can buy assets through debt (let's say a building) and this will generate for example a payment of $ 500 a month, but will reward more than $ 500, say $ 700 for the rental income, then, that investment you will be generating income or net cash flows of $ 200. This result is enough to know that this investment is good debt.

7. Life and health are priceless, if you or a family member has a medical emergency, and unfortunately does not have an insurance policy or cash, it has no choice but to use their credit cards (on if you want the person who suffers is the emergency care in a private clinic). That is why it is always good to have an insurance policy for their personal and property (especially vehicles).

8. Endéudese if you work at a firm or company that offers preferential interest rates for their employees.

9. Endéudese if you have control over themselves and their finances. This premise is the most important of all, and you must be very responsible to take any decision of indebtedness. If in truth and with great awareness, you have control over themselves and their finances, be prepared to have and enjoy the goods and services with those who always dreamed about. Educate yourself on this, read about the issue, not only is this book and look for others to read and listen to the economists in the programs of opinion and the press. Try to understand and learn, get an expert, get a broad view about the finances and do things with consciousness. The bad reputation they have debts from people who decided to navigate these murky waters without having been prepared for them.