Loans can help you achieve goals you wouldn’t otherwise have money for. Borrowing can now be helped by the record low interest rates due to low central bank base rates.
Let’s look at what type of loan or loan you want to focus on right now, what are the good terms, and what to look out for? The Money Center article will help you with this.
Among market-based loans, mortgage rates typically have the lowest interest rates, and at the moment we can take out a home loan at an interest rate of around 5 percent, according to the Central Bank.
Mortgage loans typically last for several decades, but many banks already offer products that have fixed installments for a longer period (3-5 years) or even for the entire term. This will allow you to calculate monthly installments in exchange for slightly higher interest rates.
What to pay attention to? For these products, it is worth considering the APR because it already includes costs above interest.
Those who have previously accumulated various types of debt from loans and utility bills are worth borrowing debt settlement loans. Debt settlement can be done with mortgages and non-mortgages, while the interest rates on the former may be significantly lower than the latter, but they may even have interest rates lower than those paid on the former debt.
Incidentally, when redeeming a loan and settling a debt, it is typical to have a larger amount of borrowed money than is usually used for home improvement or other similar purposes. Otherwise, interest rates are favorable even without offering a mortgage, up to about 10 percent.
What to pay attention to? Banks require us to authenticate and document all of our loans so far, which requires little in the way of all the financial institutions we are involved with. But the result of perseverance is a single, manageable, well-repayable loan, which is a great way to make our household debt-free.
Credit cards can be useful, as you can earn money by practicing point promotions and rebates. We can earn tens of thousands of forints this year. Many are reluctant to use a credit card, but it has an extremely practical advantage. If you have a temporary financial problem, the plastic card can solve it in no time.
What to pay attention to? Of course, it’s worth noting that this loan has a very high APR, often around 40 percent. For this reason, it is worth paying close attention to the repayment term, otherwise we can easily fall interest rates.