The eye rate is at the lowest degree ever. And I think the lowest stage has not yet been achieved. Good news if you want to take out financing. Because thanks to the low interest you are able to borrow money cheaply. Yet there is one ‘credit’ that will remain unchanged expensive: browsing red. Red numbers are the most expensive form of borrowing cash. Especially now.
Because while the borrowing price is falling, the interest price on red remains likewise.
In proportion, in the minus is thus only more expensive. How is that will possible? And more importantly, how may you avoid it?
At the outset of 2016, we were more than eleven billion euros in Holland. An extremely high amount that will bank earns a lot of money through. Because while savings rates of interest have fallen from 2.3% to 1. 0% recently, the average interest rate on reddish colored declining at a minimum, from eleven. 7% to 10. 8%. This was the conclusion of a research by the Financieele Dagblad.
Why, you appropriately wonder. I don’t think the requirement is there. Consumers often have no idea how expensive a without is. Moreover, people tend not to change banks quickly. Consequently, banks will not compete with one another on the interest rate before reddish colored. There is too much ignorance within my eyes. That is why I carry on and insist: people, avoid reddish colored numbers!
Prevent being in the red
Avoiding debts begins with an insight into your finances. Just how much comes in every month and how a lot you spend. Are you in the red since you don’t get enough or since you spend too much? Take a crucial look at your income and costs and discover where you can save. And exactly how you can prevent red quantities on your bank account.
If you are structurally red, create a plan to redeem part each month and get out of the red amounts. Do you have savings? Then instantly redeem your red financial debt and switch off the reddish. You will receive little attention on your savings, but you will probably pay around 11% interest in browsing red.
Continuous Credit as a less expensive alternative
I understand that it can be sometimes easy to be in a particular red for a while. Certainly, should you not come out at the end of the 30 days.
But encounter shows that it is sometimes as well easy. That’s why it’s don’t to just start.
Are you still structurally lacking money or do you just enjoy having extra money? Then select a Continuous Credit. Such a credit score works the same as being in the particular red, but with a much-reduced interest rate (from 4. 4%). You only pay interest to the money that you withdraw. Are you currently not withdrawing extra money? Then you definitely also pay no curiosity. Very handy and much less expensive than being in the crimson. So do it!