The top 10 tips on borrowing money.

Is borrowing money really necessary?

Before you borrow, ask yourself carefully whether it is necessary. People often make purchases that they do not actually need, or for which they can also save. So carefully consider whether it is necessary to purchase the product immediately or whether it is best to wait until you can finance it (almost) completely.

You can also borrow from your family.

It may also be possible to borrow money from family, this can also be much cheaper than borrowing money from a lender. Please note that in some cases this can lead to unwanted situations and arguments.

Make a clear overview.

Make a good overview of what you want and what is on offer. Request multiple quotes for this. This often allows you to see at a glance which loan types meet your needs. Do not go overnight either, it often pays off if you are well informed about what is on offer.

Limited borrowing saves you money.

Don't borrow too generously, but not too tight either. A loan that is too large means that you pay a relatively high interest while in reality you could have been cheaper. A loan that is too small can mean that you have to take out or expand an extra loan, which in turn entails costs. So consider carefully how much money you need.

Compare all interest rates.

Take a good look at the interest rates. Low interest rates are attractive, but being part of a variable interest rate can mean that you can pay much higher interest at a later stage. So carefully consider whether you want to take risks or whether you prefer to know where you stand with a stable interest rate level.

Always read the terms and conditions.

Do not only pay attention to the interest rate, but also ask about other conditions for early repayment and death insurance, for example.

What is the purpose of the loan.

Determine the purpose of the loan: Do you want to finance a large purchase and not worry about the repayment? Then a loan with a fixed amount might be something for you. However, if you want to finance 'smaller' purchases more often but can pay them back quickly, a credit card may be more for you, because you decide when you make the repayment.

Determine term.

Check whether you think it is more important to have more space every month with a longer term or whether you prefer to get rid of your debts as soon as possible. With a shorter term, you must take other fixed costs into account. So make a budget and adjust the type of loan accordingly.

Maturity versus lifetime.

See if the term of the loan matches the life of the product. If you take longer to pay off than you use the product, it will not make you happy. So choose a term that suits the product type.

Mortgage interest.

Note that nowadays you can only deduct the mortgage interest from your (first) home from the tax. Other destinations such as cars, boats and equipment fall under consumer credit and are therefore no longer deductible.

Better prevention than cure.

In the unlikely event that problems arise with the repayment of the credit, call for help in time. For example, consult an advisor who knows a lot about this. This way you can still set the sails and prevent worse.

You can take out a mini loan online.

This has the advantage that the money will be in your account within a few minutes. Of course you also want to know more about that. That is why it is good that you now look at the benefits and options when taking out a mini loan. Another name is a mini credit and then you can often borrow up to 750 or 1000 US dollars. You will then receive this amount immediately into your account and you can use that money immediately. There are many people who take out a mini loan if, for example, they have to pay bills, but also when they, for example, want to do shopping for Sinterklaas and have not yet received the salary or for unexpected repair costs of the car (which you cannot afford to do without for work). As soon as the salary has been received, the mini loan may be repaid. You could do this too, if it is just the period of the great offers, isn't it a shame if you let go of that opportunity? Therefore, calculate the costs of the mini loan and see whether it is worthwhile for you (interest and / or costs) to take out.

Do you choose the mini loan?

Of course you decide entirely yourself whether you are going to take out the mini loan or not. We only recommend that you always read the conditions so that you are not faced with unpleasant surprises afterwards. In addition, you also need to check when the money must be repaid and what the interest is. If you are aware of this, you have prepared well and if you agree with the conditions, you can take out the mini loan responsibly. This can be done by telephone, but also by SMS and e-mail. You therefore have plenty of options when you take out this loan. Make sure that you see what you are most profitable from so that you never pay too much. You can save money on borrowing money, if you do the comparison now. This allows you to choose the best mini loan for yourself.

The subordinated loan in the spotlight

We are all familiar with the classic forms of loans that you and I as private individuals have certainly used before. In addition to the classic forms, however, there are also loans that specifically focus on the business world. One of the best-known loan forms within this category of loans is the subordinated loan. In short, a subordinated loan is a loan that is provided to companies and in most cases also by companies. In most cases, the borrower of the amount is no longer able to take out a normal loan.

A subordinated loan can offer the ideal solution in this case. An interesting solution of which we would like to explain the how, what and why. In this way you will immediately be able to form an idea of ​​what a subordinated loan is and whether it can also be considered in your unique situation.

To make the concept of subordinated loan even clearer, it is interesting to first place the loan itself in the spotlight. As already indicated, the subordinated loan is provided by a company such as a bank or an investment company to another company. The term 'subordinated' is particularly important here.

This is because it concerns a loan where the lender comes at the back of the queue in the event of a bankruptcy of the company to which the credit was provided. In practical terms, this means that if there are several creditors, the creditor who provided the subordinated loan will be the last or one of the latter to be able to recover its amount.

Despite this negative aspect of this type of credit, there are of course also advantages to this loan. Let's take a quick look at these pros and cons of the subordinated loan, as well as the specific order used in claiming debt, which is critical when making a subordinated loan.

The order of repayment in the event of bankruptcy of a company is something that is regulated by law and that is particularly disadvantageous for the subordinated loan. When repaying debts, it is the case that first of all the preferential debts will have to be repaid.

Once this has happened, it is the turn of the credit companies that have provided the company with traditional loans. If these have also been repaid, then any subordinated loans will be discussed. Despite their position, this form of credit still takes precedence over any shareholders or bondholders of the company.

Providing a subordinated loan has both its advantages and disadvantages. The great advantage for the company, bank or investor that provides the credit is that a high interest rate is required on this form of borrowing. With each repayment, the lender therefore receives a considerable sum extra.

This sum must therefore cover the great risk associated with this form of borrowing. Give a little, take a little. In addition, there is the interesting aspect that no tax has to be paid on the interest on the amounts received. You will know by now what the disadvantage is of the subordinated loan.

After all, as an investment company or lender you are placed at the back of the list of creditors. That is the great risk you take when providing a subordinated account and that is what it is all about in the end.

In addition to the lender, a company, investor or bank, there is of course also the company that takes out the subordinated loan. For this company too, there are undeniable advantages and disadvantages associated with this form of loan.

Companies usually rely on this form of borrowing because they can no longer obtain a regular loan for certain reasons. This is also the most important benefit for the borrower.

In this case, we should consider, for example, companies that are facing financial problems, or companies that have already taken out several traditional loans with a bank. It is also important that the subordinated loan can sometimes be regarded as equity. Still a financially interesting advantage for the company in question. The disadvantage is that, due to the high risk that the lender runs, a high interest rate is charged.

This high interest rate, in combination with the monthly repayment that has to be paid, can cause financial problems for a company that was already in lesser papers. A lot of advantages and disadvantages, therefore, for both the lender and the person taking out the loan. A lot of advantages and disadvantages that should also be weighed thoroughly. If you want to know more about the subordinated loan, you can also find information about this on Wikipedia .

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