Home loan or personal loan – how to buy a new TV?

There are only days left in the fall, and festive promotions have been flooding us for weeks. Ahead of December, Black Friday is the culmination of fall shopping, with all stores blasting their promotions, which is why many are buying gifts during this time. You can catch some really good discounts, but you probably won’t have to go far in December if you look for promotional items.

Festive discounts are a great way to get the product you would need anyway, because at the end of the year we can get it cheaper now, like a new washing machine or a kitchen appliance. Pre-holiday bulk shopping is best funded from your own pocket, but unfortunately this is not always the case.

If you were to use external financial help during this period

If you were to use external financial help during this period

You might want to look at what the banks are offering. Nowadays, we can apply for a personal loan on more favorable terms than a few years ago, due to the low interest rate environment and competition between banks.

However, it is important to look at the terms and conditions and compare offers from several banks before entering into any contract. We looked at the arguments for a highly popular commodity loan and personal loan at this time.

This is something you should know about a commodity loan before you start

This is something you should know about a commodity loan before you start

A merchandise loan is basically designed so that if you are unable or unwilling to pay for the product purchased in a lump sum in the shop, you can take it home after a quick credit assessment, after presenting the necessary documents, and then pay it off in installments. When it comes to a larger product, you usually have to pay a certain amount of your own at the time of purchase – typically 10-20 percent of the total price – but for cheaper products, you can take your chosen product up to 0 percent.

When choosing products that can be purchased with a commodity loan, be sure to look at what costs you have to consider in addition to the price of the product. Many offers are advertised at 0 percent interest rate, but that does not mean that the loan is free, since in addition to the interest you also have to pay the management fee, which is already an additional cost over the price of the product.

When comparing your loans

When comparing your loans

You might want to consider APRs instead of interest rates, that is, the entire APR, as this includes not only the interest rate but also the management cost and gives you a much more accurate idea of ​​how much the loan will cost. If you see a product advertised with a 0 percent APR, you should also read the small print, as it is a prerequisite for a virtually free merchandise credit that you also have a credit card agreement with the lender, which is usually subject to strict conditions with the right application, you can easily push the unsuspecting buyer into debt.

It is important to note that in the credit market, commodity credit is one of the most expensive consumer loans, as APR can reach 35-39%. While it is tempting to think that within a few hours you can own a new, expensive product without having to pay it off, keep in mind that a commodity loan is just as much a loan as you do at a branch, so be sure to consider it before signing a contract. can you manage your monthly installment? If you slip on the repayment, you will have to pay late interest, which will save you the discount you made at the time of purchase.

Sherman Obando

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