There are many
aspects to take into account when taking out a loan. Borrowing money, costs
money! In order to pay the interest and repayment of the loan, there must be
income. For example, from a (permanent) employment. Part of your total income
will therefore be used to repay the loan. It can take years before the loan is
paid off. Before taking out a loan, you should therefore think carefully about
the total costs of the loan. It is wise to borrow money only if there is no
other option or if the loan is used to generate money with it. For example, if
you need a car as a condition for getting a job.
Not borrowing money from family or friends
It is often very
cheap to borrow money from family or friends. However, this is often not wise.
Repayment problems can lead to irritations that do not benefit the friendship or
family relationship. Borrowing money is therefore best done from a reliable
lender. You can check This website for the best results now.
Read the conditions carefully
A loan seems
like a simple financial product. But the conditions that come with it can be
very complicated to understand. The principle is simple. For each loan from the
lender, a fee is paid in the form of interest. Also, the debt, with interest,
must be repaid within a specified time. Nothing more and nothing less.
Nevertheless, it is certainly advisable to carefully read the conditions. If
the conditions are not (sufficiently) clear, always ask for an explanation
until it is clear!
Transferring a loan can be cheaper
Taking out a
loan often means entering into a commitment for several years. It is therefore
possible that the loan was taken out at a high interest rate, while the current
interest rate has now fallen sharply. Or that you are eligible for a lower
interest rate because, for example, you have started earning more. In that case
it may be advantageous to take out the loan at a lower interest rate. Via Dutch
Credit Collective you can request a quote to (let) see if transferring in your
case is also advantageous.
Think carefully about a fixed or variable interest
Which is better:
a fixed rate or a variable rate? A variable interest rate can be a good choice
especially because in that case you have the flexibility to repay or transfer
the loan without penalty. A fixed interest provides more certainty about the
costs of the loan and whether you can continue to pay it off. You know exactly
where you stand in advance. However, you are less flexible than with a variable
rate loan, because there are often costs charged with early repayment.
Consider whether you can continue to pay the monthly
If you expect
changes in the (near) future, keep this in mind when taking out the loan. Are
you moving soon? Is there a real chance that you will become unemployed? Is a
child on the way? Is one of your children going to study or live in rooms soon?
In all these situations, keep in mind that with a loan you probably have less
money to spend every month. You may be able to take out insurance to cover the
risk that you will no longer be able to bear monthly payments in the event of
unemployment, incapacity for work or death. But also with insurance you have to
think carefully about your future before you decide to borrow.