Installment buying is an expensive form of borrowing
During your search for a new couch, you probably noticed that buying couches on installment. This is a payment option that is a godsend for starters and quality-conscious consumers. After all, it is no longer possible to finance your household effects through a mortgage and quality has its price.
But buying on installment is a very expensive form of borrowing. The interest rate is often high and can be as much as 14%. A personal loan , on the other hand, is cheaper, because the interest rate is much lower. Do you want more flexibility, because you want to purchase even more items for your household effects, for example? Then you can also opt for a revolving credit or a larger loan amount for your personal loan.
Refinance existing loan (s)
If you currently already have an installment purchase or another loan with a high interest rate, you can transfer it free of charge to a loan with a lower interest rate .
If you have several of these types of loans, it is also possible to combine all your loans and transfer them to one loan. It is more advantageous to have one larger loan than several small loans. Moreover, it is a lot clearer, so that you will run into problems less quickly. Due to the lower interest rate, you pay less for your loan, in addition, the term is often much shorter, so that your total amount is also lower.
The calculation example below shows what your benefits could be:
Suppose you have bought a number of furniture on installment and you have taken out a loan of € 10,000. The interest on this loan with your own lender is the maximum 14%. You then pay € 1,400 in interest per year.
If you were to transfer this loan to another bank, via Snaploan Online, at an interest rate of, for example, 5.8%, you would only pay € 580 interest per year for the same loan of € 10,000. That is a saving of almost € 820 per year!
Would you like to request a quote for a loan for your new sofa? You can request a quote without obligation and online .
Or do you want to switch your expensive loans to consumer credit? Then calculate your savings via our online transfer service .