Choose realistic monthly charges
Monthly charges define the amount that one pays monthly to a lender. These charges consist of a part interest and a part repayment. If you take out a payday loan with too high monthly charges, you will eventually run into problems with financing the loan. Make sure you choose the right balance when choosing the monthly payments. There are also handy tools to calculate future monthly payments on your loan or mortgage.
Determine a favorable duration
Always match the duration of a payday loan with the life of a loan. It is not desirable that you finance a loan when what has been purchased with the loan has already been written off, for example a car. All in all, it is favorable to choose a loan with a term of five years. Take into account future events that may have an impact on the financial situation.
Take into account any fall in income
Take into account any changing circumstances on the labor market, which may cause income to fall. This is very annoying, especially because your fixed costs continue to run. You can influence and adjust yourself on some expenses, while others will always remain constant and cannot be changed in the short term, such as housing costs or insurance.
Pay attention to conditions with a revolving credit
Do you want to choose revolving credit as a loan form? Then view the credit conditions to see how the phasing-out phase is set. The phase-out phase means that at some point the lender wants you to pay off the loan.
The phase-out phase usually starts when the age of 60 is reached, with the aim that if the monthly burden is increased, the loan will be repaid when the age of 65 or 68 is reached. Therefore, take this phase of completion into account and consider whether a higher monthly payment will reach your budget at that time when you reach the age of 60.
Consider whether you want to refinance a loan
If you have multiple loans, you probably pay a lot of interest. Small loans are in fact quite pricey compared to loans that are taken out for a high amount. When transferring a loan you take out one new loan for an amount with which you can repay all existing loans. You no longer have multiple loans, but one large loan. Because you have one large loan instead of all relatively small loans, you pay less interest costs.
View the terms and services of the lender
In addition to the product conditions and the price of credit, there are also services that a lender offers, such as the possibility of an advisory meeting or that your taken out loan is monitored. Therefore compare different providers and the associated services.
Compare different providers
Many people who borrow money have taken out a loan with one of the major banks in the Netherlands. The banks are almost always very reliable, know your financial situation and the same bank offers sufficient overview. Realize that many people do not know that these banks have a high price tag. The large banks are often not the cheapest in terms of consumer loans. Compare the interest costs of large banks with the rates of small online lenders and you will find that this sometimes makes a difference. Comparing a loan therefore often yields new insights into the area of interest costs and the corresponding duration.
Developments in the level of interest costs
Due to the high competition in the loan market, interest rates change from time to time. In addition, the interest costs depend on various developments in the financial markets. It is therefore useful if interest rate developments are monitored during the term. Is your interest rate falling? Then you can decide whether you want to refinance the existing loan. This is often offered free of charge.