Are you considering taking out consumer loans? Then there is more than the loan amount you have to decide. Here are four questions that are important to consider when taking out such a loan.
A consumer loan can come in handy in many situations where unforeseen expenses arise. For example, you might be unlucky and get a leak in the bathroom during a time when your wallet is thin. Also, in some cases you can save money on taking out a consumer loan, but more on that later.
What sets the consumer loan apart from other loans is first and foremost that you can spend the money on exactly what you want, without the lender taking a pledge on something you own. The bank that lends you money must therefore take greater risk, and that is the explanation for why the consumer loan is more expensive than, for example, a mortgage.
1. How much can I pay back a month?
The first thing to consider when applying for a consumer loan is how much you can repay per month.
Get an overview of the expenses in the online bank. Check the utility account and cards you use in everyday life. Getting to know your consumption is important, says InnerSave Bank bank manager Nolbert Perg.
Maybe you see that there is a lot of money spent on food in the canteen, that you go to the gas station a little too often to buy a soda or that you still subscribe to a power service you do not use?
Grab this, then you suddenly have a little more to mess with every month, says Perg.
2. How will I pay down the loan?
The next thing you should consider is how to repay the money. Do you have to pay a fixed sum per month over several years? Or is it better to pay only a minimum amount per month for periods, and then pay extra when appropriate?
– At InnerSave Bank we offer flexible repayment. It is good for you who know that you will receive extra income in a few months. Then you only pay a minimum amount in the month until this money is in your account, explains Perg, or you can always pay more if or when you want.
Discover the benefits of a flexible loan
3. How do I know what is right for me?
It may seem difficult to orientate yourself in the jungle of consumer loans, but with simple guides it is easier for you to evaluate the offers.
You have three numbers to relate to: the interest rate, the establishment fee and the termination fee. It is the sum of these that determines how good the consumer loan is, says bank manager Perg.
InnerSave Bank is concerned about the loan being adapted to you and your finances, and offers competitive conditions. With us you get loans with interest from 7.99% to 19.99%, a setup fee of $ 900 and a termination fee of $ 40.
4. When does it pay off to take out consumer loans?
Did the washing machine strike? Then it can pay to buy new right away, even if it is three weeks to pay. Consumer loans may be the solution. With that, you don’t have to wash clothes at the laundry for several weeks, which also costs money and is a more cumbersome alternative.
If the fridge breaks, you can live on takeaway and restaurant dinners for a while, but it will probably pay off to buy the fridge right away. Then you can keep your normal food budget, says Perg.
Yes, the consumer loan can help you out of troubled situations. But it also happens that it can save you money. This is first and foremost if you come across a bargain you just can’t help but cling to.