If you go with the idea of taking up a consumer loan, you have probably heard all the horror stories that they are the pure “debt traps”. And if you’ve noticed, it’s probably always been people who haven’t needed a consumer loan that has said it, right?
The truth is that we can all need a consumer loan – especially if we suddenly experience some expenses that we cannot do without – and we have not foreseen. It is clear that you should not, as a rule, take up a consumer loan to pay for the holiday. So it makes sense to not go on holiday before you can afford it. However, in some cases, some extra money may be needed on your pocket. If the washing machine breaks one day, it is quickly three or four thousand dollars for a new one – and it is not certain that the family of children will have that kind of money at the end of the month. Therefore, there is no reason to look down on consumer loans – or for that matter the thousands of Danes who use them for great pleasure.
But if you are looking for a consumer loan, we always recommend that you find the best comparison of consumer loans. Often, your bank will like to help you – especially with smaller loans. If you are lucky, you can sometimes get an overdraft instead of a real consumer loan. An overdraft, by its very nature, simply means that you go into a minus on one of your accounts, expecting that you will fully redeem it next month – or as soon as possible. Here, of course, you should expect to pay interest on what you have borrowed, but typically there are not very high founding costs associated with this method.
However, not everyone has the convenience of going down to the bank and asking for an overdraft – or maybe you already have one. In these cases, it may make sense for you to look for an online consumer loan. Here you can apply for the loan that suits you best, and there are hundreds of different pages on the web that help you with the most useful comparison. Here you can compare interest rates, foundation costs, annual fees and much more. In addition to making it very easy to take out a loan, it also has the advantage that you typically get a quick answer to your loan application. Most places offer answers within a few hours.
When looking for the best places to compare loans, there may be several factors that play a role. If you generally have a high availability, you must be careful to borrow from places that only offer long repayment periods. Let’s give you an example:
If you have a monthly allowance of 3000 kroner after all expenses have been paid and you, for example, borrow 10,000 kroner, it will be far better for you to find a place where you can deposit extra on the amount so that it is quickly out of the world. That way, you save a lot of money in interest.
On the other hand, if your disposable amount is not so large, you may have to find that loans that give you a little longer maturity – for example, 72 months. Here you must pay attention to the interest rate. 15% in one year may not sound like much, but if you add up the interest costs throughout the life of the loan, you can be up and down twice as much as you borrowed. On the other hand, you typically have a very low performance, which, in turn, can be more sure to pay. In short, it is very individual to find the best calculator for just you, and we recommend that you keep your eyes open and make sure to read it in fine print.
Once you have found the best consumer loan for your situation, you can also take advantage of the loan agreement (before you have accepted it) into the bank. If your bank advisor suddenly sees that you can borrow money elsewhere, the bank may be more inclined to give you a loan – and here you can typically save money either in interest rates, founding fees – or in some cases both.
One should not underestimate that banks also want to make money. The only way they can make money is by issuing debt. However, it is a delicate balance that the banks must take into account, as they must of course also be sure that they will get their money back. But with a pre-approved loan application under the arm, you are much stronger when you have to negotiate interest with the bank.
And this tip doesn’t necessarily have to be limited to small loans. For example, if you have a car with 100,000 in residual debt, a student loan of 30,000 and for example a consumer loan of 50,000, then you are in total with debt items of 180,000 kroner. Sometimes it can be difficult to overlook, and it is therefore easier to collect the loans in one. When this is done, it is typically up to raising its monthly availability by, for example, giving the loan a longer term. And if you, for example, need to collect your loans in one place, a debt of DKK 180,000 must be issued in total. If you go down to your bank advisor with a pre-approved loan document, the bank advisor can see that the loan provider has assessed your finances and does not think there will be any trouble borrowing your money.
In this way, your bank can quickly see that if they do not lend you the money – you just lend them somewhere else. And this is where the banks will typically come in and offer you a lower interest rate, zero foundation costs, cheaper insurance or other benefits that the bank has – precisely because they want to keep you as a customer.
So there can be many reasons for demanding a consumer loan – and it can easily be done to clean up the economy and find air in the budget, without consumption loans having to be a debt trap. We hope you find the loan that suits you.