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Save Money With Our Tips Uncategorized Borrow money for a one-time purchase?

Borrow money for a one-time purchase?

Sometimes you want or have to do a large expense and prefer to pay it in one go without running out of your savings. Consider, for example, buying a new car, making a planned trip around the world or furnishing a baby room. You can choose to borrow money once. That way you can directly realize your dream.

Personal loan

Personal loan

The personal loan is the most chosen when it comes to one-off financing. You borrow the amount you need in one go and receive it directly on your account. This way you can make your one-time purchase. You then pay a certain amount in installments each month. You choose a monthly amount that you think you can pay off. The lender will calculate for you whether this is a responsible amount in your situation.

The major advantage of a personal loan over a revolving credit is the certainty that this form of loan offers. For example, with a personal loan, the loan amount, the term and the interest are fixed. This prevents you from borrowing more than you actually needed. You also know in advance exactly when you will have repaid the loan in full, because you also fix the term of the loan. And finally, you cannot be surprised by rising interest rates. This is fixed during the term of your loan.

Did you know that: the average loan amount for furnishing a home is € 12,500?

Revolving credit

Revolving credit

In addition to the personal loan, you can also opt for a revolving credit. This offers just a little more flexibility than a personal loan. It can be the financial support or just that little bit more freedom that you need temporarily. If you opt for a revolving credit, you agree a credit limit with the lender. That is the maximum amount that you can withdraw. Now with a revolving credit it is possible that you can withdraw the repaid amounts. You decide when and how much money you withdraw. And you only pay interest on the amount that you actually borrowed. The term is not fixed, so there is no fixed deadline by which the loan must be fully repaid.

Borrowing money on purpose

Borrowing money on purpose

When you have a new car in mind, you prefer to buy it immediately and pay it off at the dealer so that the car becomes your full property. A good option is to borrow the one-off amount of money that you need. Be careful not to take hasty decisions and not take the first loan that seems interesting. You will also have to take the time to compare different lenders. You do this by requesting quotations and putting them side by side. Do you have a specific offer that you would like to agree to? Then read the obligations and risks of this one-off financing carefully again. This way you avoid signing for something that you will regret later.

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