Borrow cheap money: We all want that. If we want to take out a loan, we look for the loan with which we are most advantageous. But how do you ensure that you also find that cheap loan? And how do you know if you are really benefiting from something? We give you a number of important tips for borrowing money cheaply here.
Tip 1
Do you want to borrow money cheaply? Then make sure you take the time to compare the different providers and loan types. For example, do not immediately go into business with the credit provider that has been recommended to you by a good friend, but ask for quotations without obligation at various places. Even when you need to have some extra cash to hand quickly, taking a moment to properly compare all your options can ultimately save you a lot of money and misery!
Tip 2
Because we like to borrow cheap money, we are quickly inclined to be tempted by a loan with a low interest rate. Of course, a low interest rate is beneficial, but it is important that this is not the only thing you are looking at! For example, what are the loan conditions that belong to the loan that you have in mind? And are there other additional costs that you have to take into account?
For example, providers of mini-loans are known to charge a fixed amount and additional 'borrowing costs' in order to circumvent the legal maximum interest. So you should be aware of this. And do you, for example, want a flexible loan where you can adjust the terms in between when it suits you better, or do you suddenly pay a lot more? That is also something you have to find out carefully in advance. And also check, for example, what exactly the consequences are if you do not make a payment on time. After all, you never know whether you will have another setback, so make sure you factor this in when you choose a loan.
Tip 3
It is now a well-known fact: Borrowing money costs money. Even when we borrow money cheaply somewhere, we always end up paying more than the loan amount. In order to be cheaper, it is therefore worthwhile to delve into alternatives. Do not just borrow the maximum possible amount, but see if there are any alternatives for a little extra income. Maybe you can earn something extra or are there things that you can easily sell?
A loan can of course offer a solution and is in many cases a good idea, but if you have to borrow a little less money because you know how to get it together in a different way, that is of course a nice bonus.