Research by Outbank shows that about half of the 5,000 respondents had no basic knowledge about borrowing money. This group could name a few options for extra money, but often did not know the basic knowledge for budgeting.
Other different studies show that many consumers are not so well aware of the types of borrowing, the consequences of borrowing money and how to budget.
For example, many consumers do not know that they can borrow extra money with a mini loan. Red is a little more known among consumers, but many do not see red as a loan form. This further emphasizes that they do not know all the consequences of all loan forms, because standing in red is indeed a loan and also costs money.
The government is aware that it must inform its citizens about borrowing money in order to prevent debts. You can always borrow extra, but borrow responsibly. Know which loan types are available and by requesting quotes, research which loan suits you best with which interest and conditions. In addition, more and more consumers are getting budgeting tips and in addition, the government is working on stricter rules regarding extra loans with a mini loan.
Borrow extra money for a new house
When you decide that you want a home of your own, it is wise that you save money. If you do not, you have to borrow extra money. Borrowing extra money costs money, because you have to pay interest on this. This interest is variable in most cases, when there is a recession, the costs can run high. That is why it is important to save, when that is not possible is an option to borrow extra money for a new house, for example.
There are different types of loans where you can borrow extra money. The most common loan is the revolving credit. The revolving credit is a flexible form of borrowing money because you can borrow and repay whenever you want. There is a danger here that you borrow too much and too often money, which can then run into substantial costs. This loan is often committed when, for example, someone has a renovation and does not know exactly how much it will actually cost. If it costs more than planned, you can easily borrow and vice versa.
Another form of borrowing is the personal loan.
A personal loan has a fixed interest rate, a fixed amount that is borrowed and a fixed number of months that the money must be paid back. This is a safer form of borrowing money because you know where you stand. This loan can be used, for example, to finance the study. Of course you can also borrow extra money for a new house!