Almost every Dutch person puts money aside every month. This often happens in a savings account. By saving money, you can make an expensive purchase over time. Savings can also be easy for unforeseen costs. Yet it is not nearly possible to save everything. For example, there are certain expensive items that you simply cannot purchase without a loan. In this case we do not mean a mortgage for a house, but for other purchases, such as a car, motorcycle or boat, for example.

Not everyone is so wealthy that they can make such purchases without a loan. Do you also want to take out a loan for an expensive purchase? Think carefully before you do this. The average Dutch person has in recent years started paying considerably more interest on a loan. You are undoubtedly not waiting for this. You have come to the right place here. We first give you some general information about the rising interest rates and then provide you with some useful tips to save money on your loan.

Percentage is considerably higher than with a mortgage

Percentage is considerably higher than with a mortgage

To pay for a house, you must have taken out a mortgage. You usually pay a few percent interest on such a mortgage. This percentage is often not particularly high. After all, the mortgage must remain affordable. How different is this with personal loans? Pricewise recently conducted a survey among a thousand Dutch people and it appears that the percentages paid on loans are extremely high. More than 25 percent of people with a loan pay over 8 percent interest on this. This is of course already a very high percentage, but it can of course be even crazier. The research also shows that there are even people who pay between 11 and 14 percent interest on a loan. And the higher the interest on your loan, the harder it is to pay it off. You have to pay back a considerably higher amount than you have borrowed.

What does the average Dutch person borrow money for?

What does the <a href=average Dutch person borrow money for?” width=”640″ height=”426″ />

Money is being borrowed today for all sorts of things. Not only for expensive purchases is borrowed, but also a telephone subscription is in fact a loan. You enter into a contract for one or two years and you pay a certain amount each month. In addition, a lot of interest is paid by people who are red at, for example, their bank or have borrowed money from a lender. Finally, we also know many Dutch people who have to deal with a study debt. Compared to the aforementioned loans, the interest on a student loan is not too bad. This is because on average about 1 percent interest is paid on this, making this loan relatively easy to repay. Although of course it depends on how much money you have borrowed over the years.

Never just take out a loan

Never just take out a loan

Do you want to make a purchase that requires a loan? Then of course you want the money together as quickly as possible. Is there anyone in your immediate environment, such as family, who can provide you with the money? Then there is a good chance that you will turn to a lender to get the required amount together. Most people start searching on the internet. Once they have found a lender, a loan can be taken out immediately. However, we do not recommend this. Why not? Because then you will probably pay unnecessarily much. Therefore, always start by comparing a loan before you take out one.

What should you look for when making a comparison?

What should you look for when making a comparison?

Borrowing money, costs money. We no longer need to tell you this. However, prices differ with the different providers of personal credit. As you could already read above, you pay 8 percent interest with one provider and 14. with a different provider. A difference of 6 percent may not seem very large, but expressed in USD this will of course be a completely different story. Therefore always look at the fixed monthly costs that you have when taking out a loan. Put different lenders next to each other and see which party you are the cheapest out of. The price is undoubtedly the deciding factor, but we do not advise you to focus too much on the price.

There are also a number of other things that you will have to deal with when you take out a loan. In this case, of course, we refer to the interest rates, but also to the term. For example, you have to pay off your loan with one lender within a year, while you can take a few years for it with the other provider. The faster you pay off a loan, the higher your monthly costs. The disadvantage of a loan with a longer term is of course that you have to spend considerably more on interest. So take the time to make a comparison. Only then will you choose the best loan and that is ultimately only to your advantage.

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