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.