Nowadays, borrowing money is getting cheaper. The interest on consumer loan continues to fall, so you can borrow cheap money.
The prognosis for 2016 is that the interest rate will not rise, so if you want to borrow money you can profit from the low interest on your loan.
Borrowing has become cheaper
That borrowing through the low interest rate has become cheaper that is now known to everyone. Not only the interest on the loans has fallen but also the interest you receive on your savings has become considerably lower. The reason that interest rates on loans are lower is that the European Central Bank (ECB) reduced interest rates due to the economic crisis. As a result, banks can get cheaper money and this has the result that the consumer can borrow cheaper money. This is therefore encouraged by the European Central Bank (ECB).
Historically low interest rates
The newspapers are full of it and also on TV there is enough attention tendered. The interest rate is historically low. Many people benefit from low interest rates by taking out a mortgage now or by switching their existing mortgage. The interest rate has been decreasing for about 5 years and the end still seems out of sight. On a consumer credit the decline is spectacular, 5 years ago the interest rate was still 11% and nowadays the interest on a personal loan or revolving credit has dropped to about an average of 7%. The lowest interest rate is 4.2%.
The lenders offering a consumer credit have lowered the interest rate less quickly than the mortgage lenders. This is because the competition is less strong between the lenders. The conditions have been broadened by the lenders. For example, you can still apply for a loan at a later age and the term of the loans has been extended.
Due to the low interest rate, more and more consumers are benefiting from cheaper borrowing.
Transferring a loan: If you already have an ongoing loan , it can pay off to take a good look at the interest rate you now pay. Chances are that when you switch you will pay a lower interest rate. With a revolving credit you can always switch free of charge, so take advantage of low interest rates now and see how much you can save if you switch to a different lender.
Loan for a renovation: If you always wanted to renovate your house but did not have enough money available, then now is the time to finance the renovation. To finance the renovation you can increase the existing mortgage, apply for an extra mortgage or you can also apply for a personal loan or a revolving credit.
Merging multiple loans: If you have multiple loans such as a personal loan , an outstanding amount from your credit card company or overdraft with your bank, then it is worthwhile to transfer all these loans into one loan. The advantages of combining the loans is that you now benefit from the low interest rates and that your financial situation is a lot clearer.
If you want to borrow cheaply at low interest rates, now is the time to take advantage. They extended the crisis measures to 2017. So until then, low interest rates will be charged to the banks, which means that you can borrow cheaper as a consumer.