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Consumer consolidated loans cause many financial problems. More than 200,000 people are registered in the RKI because they have had problems paying a consolidated loan, bills or other.

We have therefore asked three experts from expert panel,  about the pros and cons of taking a consumer consolidated loan, and whether it is a good solution at all to take out a consolidated loan if you are missing out on money.

1. If you stand and need money here and now for rent, for example, how is it best to get the money?

“It is best to always have an emergency saving for these particular situations. Because then you do not have to borrow money if a minor economic crisis should arise. Review your budget for costs you can cut down or completely eliminate. Please take an extra job or get more hours at work to ensure that you always have enough money for your necessities – so you avoid having to incur expensive consumer debt. ”

“It’s best to make sure you always have money for that kind of account in the account and haven’t spent so much that you can’t pay your bills. But most probably know well, even if they have ended up in a situation where they lack money. Should you lack money for a month to be able to pay your rent, you can contact the place where you pay your rent. Present a plan for when you can pay the bill and then cross your fingers to make sure your landlord will participate in it. If that is not possible, you can get hold of family or friends and see if they can borrow the money for you. It is important to do as much as possible to avoid having to borrow money in the bank or as a consumer consolidated loan. In my opinion, the consumer consolidated loan is not at all a solution. I would recommend that you go to the bank if you have exhausted all the other options. But be aware that the bank also charges. Even a small consolidated loan in the bank can quickly become expensive. Alternatively, if you are a student, for example, you can find a bank that offers cash credit for cheap money. It could be consolidated loan & student account. ”

“The best thing is really to look at your expenses and income and put a realistic budget today. Because if you need money ‘now and then’ for such an important expense as rent, then you have a lot to learn about finances. Rent is a ‘VIP expense’ that comes before most other expenses. In other words, then you must and must save everything else, whereas the rent must be paid, otherwise you smoke on the street. If it happens once that you are missing the money for the rent, you can, for example, borrow from your family or your credit card. But it only has to be this one time, because you have to get the budget right away so it doesn’t happen again. ”

2. Can it pay to take a consolidated loan?

“In general, you should be careful about borrowing money, especially for consumption. If you need to borrow money to fund your spending, then you have an overuse and it only bids you in the tail. You have to pay back the money you have borrowed – and it is with the interest rate of interest. Remember that when you borrow money, you take money from the future and use them now. This can cost you dearly, and it will only strain yourselves later if you have accumulated a large amount of consumer debt. It can rarely pay to take a quick consolidated loan, and often these consolidated loans are more expensive than the consolidated loans offered by the banks. ”

“No. It is the most expensive consolidated loans that exist, measured in the APR (annual percentage rate reduction). ”

3. What to pay attention to before borrowing money?

“When you borrow money, you, as mentioned, take money from your own future to use them here and now, which has its costs. An interest rate never sleeps, it is attributed 24/7. That is also when you sleep. But if it is necessary to borrow money, it is a good idea to pay attention to the following:

  • The type of consolidated loan. For example, is it a fixed or a variable rate?
  • Annual percentage rate. This is an expression of your annual real costs. ÅOP allows you to compare prices to borrow money from the various consolidated loan providers. A consolidated loan with a low interest rate can immediately look profitable, but accrued costs such as miscellaneous taxes, ongoing fees, collection fees, land registration fees, formation costs and so on can result in the consolidated loan being not as profitable anyway due to a high APR.
  • The maturity, that is, the period it takes you to withdraw and repay the consolidated loan.
  • consolidated loan terms and conditions.
  • Whether the benefit and the consolidated loan are properly geared to your current financial situation so that you are able to meet the payment of the agreed service (interest + installments + any fees). The repayment of the consolidated loan must be possible within the foreseeable future. ”

“Look at the fees. You typically pay both interest, contribution or similar and set-up fee. See what the total credit costs are. If you pay twice as much for an Iphone as it costs cash, don’t do it. Be aware that if you end up in the pocket of the aggressive quick borrowers, it is part of their business model that they know you can’t pay back. In fact, they are hoping that your consolidated loan will remain for a long time, because it will end up in very high interest rates, as they eventually sue you. It can be very difficult to get out of the Gordian knot if you first get there. ”

“You only have to borrow if it is important and cannot be different. Check what the total cost of the credit runs up in kroner, and what the annual percentage rate of running up in percentages. Find the cheapest consolidated loan: You can use the ÅOP figure to compare the price of different consolidated loans. A low APR points to a cheap consolidated loan, while a high APR points to a more expensive consolidated loan. Remember, however, that when you compare the APR on different consolidated loans, the repayment time of the consolidated loans must be the same. You cannot compare the APR for a consolidated loan that runs for 12 months with one that runs for 24 months. Some borrow money from the family, and it can also be a solution in some cases. ”

4. What to do if you have taken one or more quick consolidated loans and have difficulty paying back?

4. What to do if you have taken one or more quick consolidated loans and have difficulty paying back?

“If you have admitted one or more quick consolidated loans that it is hard to pay back, it is a good idea to revise and adjust your budget so that there is room to pay the benefits on the consolidated loans. If you have several different consolidated loans, you can advantageously investigate which of these is most expensive in terms of interest, current costs, fees, taxes and so on, because it is best to pay it off first. This does not mean that you do not have to pay off your other consolidated loans. Just look at the remaining consolidated loans to see if you can put the service down to a minimum, so you can spend the money to pay off the most expensive consolidated loan. Once the most expensive consolidated loan has been redeemed, you can reimburse the other consolidated loans for the amount your budget can hold. ”

“Get hold of a skilled private advisor who can help you negotiate sensible arrangements with the companies behind your consolidated loans. The worst thing you can do is avoid paying, because that’s what interest rates are running very fast. ”

“You have to ask for help to see your finances through and possibly clean up everything and get a total consolidated loan from a normal bank. The sooner the better!”

Change the queue out with experiences

The conclusion is, therefore, that it does not really pay to borrow you for money. Not for small consumer goods at least. Then it is better to turn down the consumption and desire to buy things and cases, or see if you can make some more money. That doesn’t mean you never have to borrow money. You just have to avoid it as far as possible, think carefully and examine your options before you decide on a consolidated loan.

Also remember that money and things are not everything. You will not be much happier at buying a brilliant new mobile phone. At least not for a long time. It shows happiness research . After a few weeks, the new phone is just a phone like everyone else. It can actually be fatter to go out with the family and enjoy each other’s company for free. For experiences gives a more lasting experience of happiness. So the next time you get the urge to buy a cool gadget, try not to swap the urge with an experience and get more happiness for less money.

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