The financial crisis hit locally as well as globally in 2008, and many patrons – private and public – caught their fingers. Programs such as The luxury trap, in the years following the outbreak of the crisis, has advised the Danes on their consumption and, not least, their handling of loans.
The opportunities for borrowing money quickly
The latter plays a bigger and bigger role for many Danes’ private finances, as the opportunities for borrowing money quickly and at an immediate low-interest-rate have grown sharply over the last few years.
In the past, banks were lending money, but companies and organizations now increasingly offer consumer loans and various options for paying off everything from washing machines and televisions to everyday purchases such as milk and rye bread.
If you already have debt in and out of here, a consumer loan can be advantageous because you have the opportunity to pay off the small loans you hold. You are then left with only a single loan.
What if you are in Credit Bureau?
If you are already registered in Credit Bureau, which pays poorly, it is still possible to apply for a consumer loan – though at a significantly higher interest rate than if you were not in Credit Bureau.
On the other hand, believes that “no matter how you turn and rotate it, mortgages are the cheapest form of a loan, and at a time when many have had to pay costs for a conversion, it would be obvious to gather the rest tax debt like a mortgage. “
On the other hand, for many people, a consumer loan can end up paying only for an older loan, and you have borrowed money to pay off a loan. In fact, one can end up moving a step forward and, at worst, two back if the new loan’s OPP (Annual Cost Percentage) is higher than the old loan or if one’s consumption is the same or increasing.
Therefore, it is important to compare the loan offerings of different loan offerings as this gives an accurate result of the real price of the loan. However, such a comparison can only be made as long as the size and maturity of the loans are the same. However, surveys also show that more and more Danes are resorting to the piggy bank instead of the offer for a fast-issued consumer loan.
Awareness among young people may be the reason
The trend comes in connection with the rising social and environmental awareness, which among other things. has prompted more and more young people to visit the recycling shops or their parents’ stores in an attempt to find a cheaper alternative to the fashion world’s constant demand for new clothes.
A survey by the Money and Pensions Panel also supports the trend, as the number of young people (aged 18-34) who had a consumer, the loan has fallen from 40% in 2013 to 28% at the beginning of 2015.
The role of a consumer loan in everyday life, therefore, depends to a large extent on one’s current economy and the possibility of any. to repay the loan to such an extent that it will not be more expensive than initially expected. So that you do not have a new loan left – only with the buck in hand.