A few tips for safe borrowing

Are you considering borrowing money? Then read our tips first and visit the websites that we advise you.

Use savings first
If you have savings, it is wise to address this first. It will cost you nothing (in the long run).

Making choices: be strong in your shoes
Remember, you make choices for which loan and where! Never let yourself be persuaded or influenced by a lender. Always borrow what you first had in mind, don't let yourself be talked into anymore.

take your time
Take the information home and never make a direct decision. The next day you may think differently.

Note: are they reliable?
Is the lender known and reliable? Google the name and see what the experiences are. Also check with the AFM whether the batch is not on the warning list. Don't you trust it? Help others and report it to the AFM (see bottom of this page).

Beware of low action rates

You know that advertising can be deceptive. For example, very attractive loans are often offered with (really) the lowest interest. This often concerns variable interest rates and these can (and almost always will) be increased over time.

Postpone the purchase
You may be able to save some money every month and save that amount. Then see if you can postpone the purchase.

Does a loan fit into your budget
Borrowing costs money, it's that simple. A loan provides a monthly repayment obligation. Does such a repayment fit into your monthly income pattern? You can check this quickly and easily with the Borrowing Risk Meter from Nibud. You can also make an overview of income and expenditure with the following points included:

  • The rent or mortgage
  • Gas, water and electricity
  • Groceries (food, clothing, care products)
  • Other fixed costs (telephone bill, internet costs, study costs)
  • About one hundred US dollars for incidental charges

Lifetime of purchase
It is a shame if your loan runs for longer than the product you buy from that money 'lives'. In other words: if you buy a TV that will last for two more years with a loan to which you are committed for three years, that is not convenient.

Also visit:

AFM
The AFM promotes fair and transparent financial markets. It is an independent conduct supervisor in the savings, borrowing, investment and insurance markets. Go to the website and read the AFM's advice on borrowing.

NIBUD
The National Institute for Budget Information (Nibud) is an independent foundation that informs and advises on household finances. Nibud focuses mainly on consumers, but also on professionals who work for the government and in financial and social services. In addition, Nibud conducts research into the financial affairs of consumers.

Borrowing money safely a few useful tips.

Borrow money safely.

When you borrow money, you naturally want to do it as safely as possible. So always be well informed before you take out a loan, so that no snags come out. Avoid high monthly costs when taking out a loan, here are some tips for a safe money loan.

First, check whether your current financial situation can afford the monthly payments. This becomes visible when you subtract the monthly income from the monthly costs. If you do or just not make it, it is wise to borrow a lower amount. On this website you can request a no-obligation quote, never accept the first proposal, but compare lenders (including the fine print). Cheap interest rates can also be temporary, and depending on the type of loan, your interest can be increased.

So if you take out a loan, make sure you double check everything, so you are well prepared and there is a smaller chance that you will run into financial problems, here are a few more tips:

  • You can request a quote without obligation on the websites of the lender, if you do that with a few different lenders you can compare the quotes (including the fine print).
  • If you take out a loan, make sure that you double check everything, so you are well prepared and there is a smaller chance that you will end up in financial problems.
  • Never borrow more money than you need. This way you avoid unnecessary costs.
  • Choose the correct term. So if you choose a long term, you get lower monthly costs. This way you can choose exactly the term that suits your financial situation.
  • Take a good look at the terms and conditions of the lender. Don't incur unexpected costs.
  • Only borrow if you really need the money.
  • Think carefully before taking out a loan. Maybe you just need to be a little more patient and just save for your dream kitchen.
  • Read the financial information leaflet and the policy. This way you will not be faced with surprises.
  • If you take out a loan, stick to your repayment term