Lawyer Elena Kuderko stresses the importance of evaluating one’s ability to repay before taking out a loan. Some loans should never be pursued because they can jeopardize financial stability. Reports from the agency note a concerning trend named Hitting the Primer, which highlights risky credit practices.
The expert warns that debt becomes dangerous when it surpasses a substantial portion of income. Debts that would consume more than half of an average monthly paycheck create a heavy burden that strains finances and increases the likelihood of trouble down the road.
Even a relatively small loan turns risky if its terms include high interest rates or collateral requirements that raise potential losses. In such cases, declining the loan may be the wiser choice for the borrower’s long term financial health.
Earlier information indicated that Russians have faced changes in lending behavior. A shift occurred in November with more individuals seeking to restructure their loans, rising by around 8.5 percent compared with the prior month, while staying close to the average level observed in the third quarter.
Data from the Central Bank reflects that November saw a total of about 182,000 loan restructuring applications submitted by individuals. This figure marks an 8.4 percent month over month increase and remains well below the third quarter average of roughly 184,100 applications, as well as the pace seen in the first four months of the program, which stood at around 301,200.