(Almost) everyone comes across the situation that some extra money is needed, for example to start their own business , to buy a car or to pay for a large wedding party . Also for smaller occasions, such as holidays , a repair to the car or the replacement of consumer goods, people are happy and often borrowed. But how do you actually borrow as wisely as possible? And if you borrow wisely, how much can you borrow?
Borrowing money, no matter how you turn or turn it, always costs money. The best tip on how to borrow wisely is therefore not to borrow more than you really need urgently. You not only pay the repayment, but also the calculated interest on your loan. And if you can repay earlier than foreseen, you will in many cases be faced with a fine . It is therefore important to only borrow the essentials and to compare the providers well with each other. Pay attention not only to the calculated interest, but also to all additional conditions. For example, what happens to the loan after death?
Interest: the firmer, the better
The following also applies to the calculation of interest: it is good to know where you stand. If you take out a loan with a variable interest rate, this interest rate could suddenly shoot up, with all the consequences that entails. In that case, it is better to pay a little more, but to know what to expect during the term.
Do not agree to terms you do not understand
In principle, there are actually few products that are as simple as a loan. Complicated, woolly language is therefore not necessary at all. There will always be a little wooliness in it (this is almost always the case when it comes to legal documents), but when your loan contract is tied together on the ifs and buts, it's time to get seriously suspicious. You will not be the first to work with a lender who camouflages bad terms with woolly language.