Risks of borrowing money.

 

Mortgage advertisement

Mortgage advertisement

All credit providers are obliged to wear the “borrow money costs money” logo. The advertisements must also contain this image, exceptions have been made for mortgage-related advertisements.

You must have seen or heard about it, the warning that borrowing money costs money in images or speech. This has created the AFM to warn people that borrowing money actually costs money. Many people did not realize that the redemption could nevertheless contain several thousands of euros more than previously thought. The debt problem has risen considerably in recent years and in this way the AFM tries to make customers aware. 89% of consumers thought the plan was a good idea after research.

Risks of borrowing

Risks of borrowing

1. Not sure if it is possible? Do not do it!

If you do not know whether you can borrow, do not do it. You must be able to take out the loan financially in order to be able to repay it in full. It is possible that various providers can still offer you a loan, but this can cause financial problems later on.

2. Do not borrow more than necessary

If you have money for a while, that is of course great, but don’t forget that you have to pay it back. Therefore, do not borrow more than you really need and thus prevent unpleasant surprises.

3. Request multiple quotes

Before you take out a loan, you must make several offers. It is important that you only borrow from recognized Dutch websites with an AFM license. Find the cheapest offer and take out the loan there.

4. Do not purchase on installment

Buying on installment is often very expensive. You sometimes pay 12 to 14% interest here compared to, for example, 4.5 to 10% on a regular loan. Although it seems so nice that you can buy a TV for BUT “20 euros”, always read the print.

5. No new loans

Do not take out new loans before you have paid off the old ones. If you do this, you will continue to run into problems for yourself, if you really need a loan, please contact an experienced expert who can help you chart your financial situation.

 

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