Borrowing money starts with yourself
At Snaploan Online, we have seen a top 5 loan goals for years:
- Home improvement / sustainability / renovation
- Repay residual debts / financial scope / lower interest
- Boat / caravan / motor
We know that not having to borrow for an investment is always better. Because a loan must be repaid with interest. But with certain (unexpected) expenses there is sometimes no choice. After all, not everyone has the savings to immediately pay for a car, new washing machine or study. Then a loan can offer a solution, especially with the current historically low interest rates from 3.5% with a Personal Loan.
In itself, there is nothing wrong with taking out a loan, as long as you can bear the burden. But for what purposes is it smart to borrow? As a guideline, if the loan is used as an investment - in yourself, in necessary goods or in something you depend on to earn your salary - a loan is certainly a meaningful idea.
In other words: borrowing starts with yourself. Which 8 loan goals are definitely worth investing in through a loan?
1. Borrow money for a car, motorcycle or e-bike
For many people, a car, a motorcycle or an e-bike is absolutely indispensable to get to work. When such a necessary means of transport suddenly breaks down or is in a mess, many people often do not have enough money to buy a new one.
First look for alternatives: are you really not able to go to work by bicycle or public transport? Could an occasion or a shared car be a solution? If not, there is no other option than to opt for a car or motorcycle loan : without a reliable means of transport you will not have any income.
By the way, borrowing money from a bank / lender is often cheaper than a loan from the car dealer.
2. Borrow money for home improvement
This is certainly a good investment!
With the current tight housing market, it is often not possible to move. That is why many people renovate or make their own homes more sustainable with a loan . This not only increases your own enjoyment of living, but also makes your home worth more and you help the environment a little bit.
3. Transferring loans to a cheaper loan
This is also an excellent idea. Do you have several loans with a high interest rate? Then switching to one clear Personal Loan with a historically low interest rate and better conditions is the best investment you can make in your future. You pay off your old debts in one go and you are debt-free again sooner.
4. Borrow money for a boat or caravan
Then we now come to the category 'pleasure loans'. After all, not every loan has to be for necessary expenses. Investing in yourself can also mean investing in fun, freedom, adventure and developing yourself further in that way.
With a loan for a boat, caravan or motor, make sure that it is still in your possession after the loan has been repaid. After all, nobody wants to have to pay off for a boat or motor that has long since become obsolete or even resold.
5. Take out loan for study
Taking out a loan for a study can definitely be a good investment. By qualifying yourself better and choosing a good education, you can eventually get a job with a better salary and more career opportunities.
Almost everyone is borrowing for their studies these days. The cheapest place to do this is at the Education Executive Agency (DUO) . But if you want to retrain yourself at a later age, it is usually not possible to borrow from DUO. Then you can take out a loan with a lender. Of course it is also possible in this way to borrow for the further education of your children: a nice investment in their future.
In all cases, it goes without saying that you must carefully determine whether the training will really help you further in your career and whether you will not be able to raise the amount by saving.
Borrow money for a driver's license
You can easily lose a few thousand us dollars to obtain a driver's license. If you need to be able to drive a car for work, borrowing money for a driver's license is a great idea. For example to come to work or to visit customers. With a driver's license you increase your chances of employment and you will always be able to get where you want independently. You also have a driving license for life, making it one of the best investments in yourself ever.
7. Borrow money for household appliances
Borrowing money for household appliances may be somewhat questionable. A loan can still be justified for a washing machine that breaks down. A washing machine with an A +++ energy class costs about USD 500 and is often a better investment in the long run than a much cheaper second-hand washing machine, but some household appliances are actually superfluous: why buy a tumble dryer if you can hang up ? And are a bread maker, the latest gadgets or a Weber outdoor kitchen really necessary?
In any case, be careful when buying home appliances on installment : a regular loan is always cheaper.
8. Borrow money for a world trip
Many young people take a year off before starting their studies or work. The reasons for this can go in any direction: leaving the parental home, going on an adventure before the 'serious life' begins, looking for yourself and then making good choices ...
Such a gap year with a world trip is often a great way to learn to stand more firmly, more independently. Do you expect to be able to easily earn back the amount after the world trip and have you thought carefully about the financial consequences? Then the first step to borrowing money wisely has already been taken.
People over 30 are also increasingly taking sabbaticals. Why wait until retirement to make beautiful journeys and see the world? It appears that people who take a sabbatical every 7-15 years are more motivated in their work and are much better able to orient themselves towards further career opportunities. It is not without reason that 85% of all Dutch people dream of a sabbatical. An excellent investment in yourself and in your career! A loan for a vacation / sabbatical / world trip can certainly pay for itself in a richer life (literally or figuratively), provided you plan well and you can bear the financial obligations of a loan.
What should you pay attention to if you want to borrow money
If you take out a loan to invest in yourself or a physical product, it is important to make a good comparison first. Which loan offers the lowest interest rates ? Are closing costs, advice costs or cancellation costs charged? And what better suits your situation: a personal loan or a revolving credit ?
To answer these questions, you can easily check the loan guide of the Dutch Credit Company.