Saving on your personal payday loan or revolving credit: how do you do that?
Do you have a personal payday loan or a revolving credit? Did you know that you can save a lot of money by taking over your loan? You can even save up to hundreds of euros by being properly informed or by comparing multiple loans. The interest rate differences between a personal payday loan and revolving credit can vary enormously. With these tips we help you on your way to saving if you take out a loan.
Benefit now from the historically low interest rate
Did you know that you can save a lot by switching to another lender? This way you benefit from a lower interest rate. The interest rate is currently historically low, so switching to a fixed interest rate such as a personal payday loan is now even more attractive. Certainly if you combine several current loans into 1 new loan, shorten the term and therefore be debt-free earlier. Moreover, you can always repay all types of loans without penalty. This gives you a huge financial benefit.
The Nederlands Fund System has recently lowered its interest rates. You can already borrow from 3.9%.
Pay close attention to the terms of the personal payday loan
Before you take out a loan, it is important that you check whether:
- The loan can be repaid early, free of charge
- There is a remission of the remaining debt in the event of death. You can cover the death risk by taking out an insurance policy, a so-called credit protector.
Save more with a larger loan amount
How much you can save on your loan depends on the loan amount. The greater the loan amount, the greater the saving. For example, if you opt for a loan of 25,000 euros and a term of 5 years, the difference in costs between the cheapest and most expensive loan can amount to more than 500 euros a year.
Note age limits
The options for taking out a loan at a later age have improved. Yet there are still limits. If you are older than 75, it will be more difficult. This also applies to the so-called senior citizen loans. At some major banks, the loan may run until the age of 80, but the maximum starting age is 74 years.
When taking out a loan, take into account the useful life of the product or item that you want to purchase with the loan. For example, if you want to drive a car for 5 years, the term of the loan should no longer be to prevent you from being left with a residual debt.