Borrow money for furnishing the houseOn July 28, 2019 by admin
Once every few years you prefer to take out all your old furniture and buy a completely new interior. But as with everything, this also costs a lot of money. Borrowing money for a new household item is then a realistic option. As a loan , we recommend a personal loan in that case. You then borrow a fixed amount at a fixed interest rate. You pay this back in installments, so you know exactly where you stand. Because furniture by itself is expensive enough, it is important that you do not pay too much for your loan. Therefore, always compare the largest selection of loans first. In that case, pay attention not only to the lowest interest rate, but also to the term and conditions.
Personal home furnishings, what to watch out for?
Lowest interest: Of course the first point you should pay attention to is obvious. Always opt for the lowest possible interest. The difference between the highest and lowest interest rates already varies by no less than 4.1 percent. With a loan for new household effects, that can easily be hundreds of euros per month.
Short duration: Always opt for the shortest possible duration. You pay slightly more money every month, but you are quicker to get rid of the loan. The shorter the duration, the lower the final costs.
Favorable conditions: The conditions of a loan largely determine whether a loan is expensive or, on the contrary, cheap. Can you repay the loan early or does the lender work with penalty interest? Will the remaining debt be canceled in the event of death or will your survivors be left with a loan? All factors that are worth comparing.
Tip! No cancellation in the event of death? Then a life insurance policy is worth considering.
Alternatives borrow money for furnishing the house
If you want to buy a new household item, then according to us a personal loan is the most suitable. There are, however, a number of other ways of borrowing money for household effects. So you have the option of a revolving credit or by buying your furniture on installment:
Borrowing money for household effects – Revolving credit
In addition to the personal loan, the most popular type of loan is the revolving credit . This is a very flexible form of loan, where you quickly borrow more money than you actually need. You agree a limit with the lender, within which you can withdraw and repay unlimited. You only pay interest on the amount actually withdrawn and the interest you pay is flexible. This form is suitable if you do not know exactly how much money you need in advance. For example when you are renovating your house.
Buying a house on installment
Another form of borrowing money for household effects is buying on installment. Whatever the offer, installment buying is always more expensive than borrowing money from a lender. Be careful with this! Before you know it you are stuck with a very expensive loan.
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