Borrow or save?

Borrow

High or unexpected expenses such as replacing your car or purchasing a new washing machine are issues that everyone has to deal with.

But how are you going to finance it all? You have been considering some things, like the amount you need, what funds you need and over what period should the funding be covered. Additionally, you are considering things like monthly spending. Can you refund the amount or is there money missing? Is there an advantage of schemes and taxes getting you part of the money back?

Regardless of how beautiful it all seems, borrowing money always costs money.

Types of loans

There are three main types of loans:

Revolving credit: When a credit facility allows you to withdraw money up to a certain amount. This form of borrowing involves the lowest interest.

Personal loan: With a personal loan, you speak in advance regarding how much money you want to borrow. The level of interest is fixed.

Leasing: For example, if you buy a car, you can often pay an advance and cover the rest of the amount in installments. The disadvantage is the high run and the fact that you only become the owner of the product after paying all installments.

Borrowing from the bank… or your employer

Sometimes, there is the possibility to borrow money from your employer. This often happens only when it comes to purchasing a house or a car. Its rate is usually much lower than in other appropriate situations…

Consumer credit

This is a private loan, usually being opted for expensive purchases like a car, for instance.

BKR

BKR stands for Credit Bureau Registration.

BKR registers all kinds of credits such as loans, but also GSM subscriptions, etc. Mortgages are not registered, but there is a disadvantage though. More than 10 million people have ended up with bad credits.
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