How choose best a loan ?
Many households are struggling to make final income, as living costs are increasing. Low sand capacity has little backing up, which means it can be difficult to pay for a new washing machine or boiler if the old one breaks down. Maybe you need a new car, or maybe you are planning a vacation, a wedding or a home conversion?
Advantages and disadvantages of loans
Let’s look at the point, most people at some point in their lives need to borrow money right after the account 24h . So it is important to understand the pros and cons of various loans and to ensure the best prices. If not, you can end up in a bad trade – and expensive credit can send you down the debt spiral.
Loans can be divided into two categories: secured and unsecured. With a secured loan, the lender requires some sort of security for the money you borrow, often from the house or car. If you pay by default, the bank or real estate community can sell the asset to settle the debt. You can usually borrow large sums with a secured loan and a lower interest rate. In addition, you can repay the debt for a long time, maybe ten or 15 years. However, secured loans are more risky than unsecured loans because you can lose your collateral if you cannot settle the debt. Therefore, you should consider carefully – and consider other options – before securing a loan.
Help with budgeting
You can usually borrow up to EUR 1,000 for a maximum of EUR 25,000 in personal loans. The interest rate is usually fixed, and the debts are returned for a fixed period, usually one, three or five years. Personal loans can therefore help you budget, because you know the total cost of your loan from the beginning and how long they want to find out.
For example, if you are married, and the wedding is set to € 7 500 pounds, you can pay € 7,500 pounds over 5% in three years. Your monthly payment will be increased by € 224.41 and you will pay a total of € 578.76 over a 36-month period.
If you have raised other debts at high interest rates, a personal loan can be a good way to take out loans and reduce costs. Suppose you have created a € 3,000 debt to a store card that charges 29% interest. You can take a loan against £ 3,000, for example 8%, to pay the store’s card balance and reduce your monthly fee. If you have also cut a store card, you would not be tempted to go into the spreading environment and increase your debt burden!
The interest rates on personal loans vary from market to market, but the coarse bed rule, the more you borrow, the lower the interest rate. For example, you can pay a 9 percent interest on a $ 3,000 loan, but only 6 percent on a £ 7,000 loan. Therefore, it makes sense to borrow a larger amount, for example £ 7,000 instead of £ 6,500. Just make sure you don’t take the debt that you can’t afford to pay back.
The loan size determines some of the loan terms. For example, it is difficult to pay a loan of EUR 7,000 in just one year because the monthly payments are relatively high. However, if the loans are only € 1,000, the 12-month duration is easier to manage. You also need to take into account the cost impact of your loan over the longer term, the lower your monthly payments – but the higher your total costs. For example, assume that loans over £ 3,000 over three years are 7 percent. The monthly fees would be 93 euros, so you pay a total price of 348 euros. If you extended the term to five years, your monthly payments would fall to £ 60, but you will pay a total of EUR 600.
The interest rates on personal loans depend partly on the amount and maturity of the loan. But lenders also usually evaluate your creditworthiness by looking at your credit file. The lowest rate is reserved for the best customers – ie borrowers with non-spot credit information. If your credit rating is neglected due to a credit rating default, you will be charged a higher interest rate or your application will be declined. In other words, there is no guarantee that you are entitled to the quoted prices. Lenders are proud of low representative rates if these rates are charged to 51% of successful applicants, which means that almost half can be charged for a higher course.
You can pay your debt before the loan agreement expires if you get some cash. But beware of premature repayment. Many lenders impose a penalty for early repayment, which could eliminate potential savings. Some lenders will also charge for personal loans, which you should take into account in your cost statements.
If you are looking for a loan, check out the best purchase prices. List loans that can vary depending on how much you want to borrow.
The best purchases are above, but it is possible to reduce some of these rates by 0.5 percentage points if you are a national account customer (or you can apply for your account).