Avoid these 8 mistakes: This is how you get a cheaper loan

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Who doesn’t love automatically saving money every month? If you are thoroughly informed, you can avoid many obstacles when getting a loan from the very beginning and keep monthly costs low. However, even those who already have an ongoing loan can easily reduce their costs with a few tips.

In May, the maximum possible interest rate for personal loans was increased to 11 percent, and 13 percent is now possible for credit card overdrafts. All lenders have increased interest rates this year, and the costs of new personal loans will continue to rise. A comparison of currently available credit would be helpful. You shouldn’t limit yourself to well-known providers like your home bank. Be careful: Not every comparison portal lists all providers. For example, you can find particularly cheap online loans at Lend.ch. The principle of mass lending and lean digital structures make consistently low interest rates possible.

So when is a loan truly “cheap”? Always compare the effective annual interest rate. This includes all costs. A low monthly payment does not mean a cheap loan. An unnecessarily long period increases overall costs. Therefore, everyone needs to optimize working time individually for themselves. It should not be too short so that you can always pay the installments on time, but also not too long so that you do not pay interest for longer than necessary. With LEND, you receive various loan offers to help you estimate which term is more suitable.

Do you have credit and think you’re doing everything right? However, get regular offers for longer loan terms. Especially people who can show that they have paid their installments on time will often receive a cheaper offer because their credit score is now better than when they applied for the loan. You can use the new loan to completely replace your old loan and save money every month thanks to this refinancing.

Anyone who has paid off the debt of a property, even partially, can benefit from more favorable conditions by taking this capital into account in the loan. For example, in the form of a second mortgage.

Everyone who applies for an installment loan as a couple pays much lower interest rates on average. Additionally, you will usually receive confirmation of a higher amount. It doesn’t matter whether you are married or not. It is also possible to add the partner later. Simply request a refinancing offer and specify your partner.

Renting your new car is definitely practical. If you factor in all expenses, a car loan may be cheaper. A car loan is definitely more flexible.

Credit cards rather than loans and credit cards are always more expensive and should only be used for small amounts and for a short period of time. If you are frequently in the red for convenience reasons, the loan will ultimately be cheaper and you should refinance your debt.

Finally, don’t forget to include your interest expenses in your tax return. The costs of a personal loan reduce your taxable income, so you pay less taxes.

Lending is prohibited if it leads to excessive indebtedness of the consumer (Article 3 Para. 1 lit. n UWG).

Source : Blick

Malan

I am Dawid Malan, a news reporter for 24 Instant News. I specialize in celebrity and entertainment news, writing stories that capture the attention of readers from all walks of life. My work has been featured in some of the world’s leading publications and I am passionate about delivering quality content to my readers.