Are you short of cash?
Then it is of course very attractive to take out a loan or purchase an installment product. Yet it is recommended that you not immediately tack. Before you take out a loan or purchase an installment product, it is wise to first make a list of things. If you do not do this, then you can still be faced with annoying financial surprises.
Read the conditions
Before you take out a loan or buy something from a mail order company, it is advisable to read the general conditions carefully. It contains the small print. By reading this carefully, you know for sure whether the loan or credit suits you. Don’t let yourself be put under pressure by a consultant. So don’t sign the loan contract under pressure, but think about it carefully. Read it carefully and possibly have it checked by an independent person
If you have signed a contract, a cancellation period of 14 days applies. You can read more about this on this page.
Research has shown that men borrow money faster to buy a product than women. The majority of women first think carefully about purchasing an expensive purchase and wait a little longer with this. However, there are exceptions. In any case, it is always wise to delve into the general terms and conditions and the small print, because this way you will not be confronted with surprises that easily.
Borrowing money always costs money
A major disadvantage of borrowing money is that it always costs money. Saving does not cost anything, but this is not always possible. Sometimes it is just necessary to borrow money, for example when you have to pay for an expensive investment. You can think of the purchase of a new car or washing machine. If you have no savings for that, a loan can of course offer a solution. It is also possible to purchase an installment product. For example, you can choose to pay for the purchase of a new washing machine in installments. Purchase by installment is also a form of borrowing.
Pay attention to the interest rate
Even if you purchase a product that you pay in installments, you also take out a type of loan. Just like any loan, there are also conditions attached to this. For example, the maximum legally set interest rate is currently 16 percent. If you purchase an installment product, there is no collateral for this. This means that the lender cannot seize the collateral if you do not pay off the loan. As a result, a higher interest rate can be charged on the loan amount.
Because of the interest, borrowing money and buying on installments always costs money. The amount that you repaid is always higher than the amount that you have borrowed or the price of the product.
So you pay more than you actually have to pay. Saving is of course a cheaper option, but not everyone has a budget for this. Certainly not when it comes to a major, important purchase, such as a new car or washing machine.
Taking out an interest-free loan
At numerous stores you can take out an interest-free option in order to purchase a product at an affordable price. Hereby you only pay redemption and no interest. So this seems like a very advantageous loan, but this is not the case. If you miss a payment or if you can no longer meet the monthly payment terms, a fine will be charged. It may also be that interest is suddenly charged on the amount to be paid. Read more about an interest-free loan on this page.
Buying an installment product is often possible in the short term. The monthly installments can also be high. Before you buy an installment product, it is therefore important to first weigh the pros and cons against each other. You can then make the right choice and prevent unnecessary financial setbacks.
You could take out a payday loan
If you would like to make an expensive investment, then a payday loan may be something for you. You hereby borrow a predetermined amount from a bank or other financial institution. The interest on the loan is also fixed. So you know exactly where you stand. A payday loan often has a high interest rate and it is often not possible to repay money early. A fine will be charged for this.
A revolving credit maybe something for you?
It is also possible to finance an investment by taking out a revolving credit. Hereby you borrow a maximum amount that you can use in a flexible way. You can withdraw the repaid amount again and again. This way you can borrow 1000 euros and pay back 500 euros. You can then withdraw the repaid amount of 500 euros. You can therefore withdraw money, repay the money and, if necessary, borrow again.
With a revolving credit you pay a fixed amount each month that consists of repayment and interest. The monthly repayment amount varies. This is because the amount you borrow always varies.
So there is enough choice, but what do you go for? Through our website you can request a free quote to find out which option is financially the most interesting. Good luck!