Do you want to do a large expense, but don’t have the money to pay for this expense? Then borrowing money in the form of a expiring credit can be a solution. If you opt for a descending credit, you will receive the amount that you borrow on your account. You then pay for the product for which you took out the loan. You do not have to link this loan to a specific expense, but usually a maturing loan is taken out for a specific expense.
Descending credit meaning
With a maturing credit you agree with the lender on an amount that you repay each month. This amount does not change within the term and this amount includes both the repayment and the interest. In the first months your monthly repayment consists for the most part of interest, but when the term expires you will pay more and more repayment.
Ultimately, you are sure that you have repaid the entire loan after the agreed time. The interest that you pay on the loan is therefore always fixed. A variable loan would mean that interest rates could go up or down, which means that the term cannot be predicted. You know exactly where you stand in the event of a maturing credit.
Close expiring credit
Before you take out an expiring loan, carefully consider the amount that you can miss each month in repayment. The higher the amount you borrow, the higher the interest amount you pay. In addition, you also pay more interest as you choose a longer term. Before a bank gives you a loan, it will review your financial situation to determine your maximum loan. The bank also checks whether you have a negative BKR registration. Multiple loans next to each other is not justified.
Note: Do you use the loan to purchase a product? Make sure that the term of the loan does not exceed the period in which you use the product. This way you prevent that you are still paying off something that you no longer use. For example, consider an expensive television that you want to replace again after a few years.
Do not pay unnecessarily too much for your expiring credit! Compare online and find the descending credit with the best conditions and lowest loan interest. Saving is very easy. Borrow money.