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.
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.
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.