Everyone wants a cozy home that exudes cosiness and warmth. But furniture costs money, even if it is bought from a well-known Swedish furniture store. Anyone who has ever bought a complete home furnishings can sing a song about it. Young people in particular, who have just turned 18 and want to have their own booth, are affected by the prices.
Loan for home furnishings
If the necessary financial means are missing, a loan for the home furnishings can be applied for. It is important that the borrower has a regular income and no negative Credit Bureau entries. A loan is not tied to a specific purpose. But you shouldn’t act too hastily.
The banks have different terms. However, not only the interest rates have to be considered, but also whether there are opportunities for free special repayments, payment breaks are granted, residual debt insurance is required and much more. Anyone looking for a loan for a home furnishing should therefore not accept the first offer.
Better choose a longer loan term
Young people who set up their first household usually don’t make much money yet. They also have to get used to the new situation. What the mother has done so far, the young person now has to do alone. It starts with shopping. Now there are costs that you never knew about.
Detergents, dishwashing detergents, cleaning agents, all of this costs its price. It is therefore advisable to choose a longer term for a home furnishing loan, as this lowers the monthly installments. Otherwise the money could be a little tight.
That would be the wrong way to live independently. At most banks, borrowers can individually choose a term. However, one should know that the loan becomes more expensive if the term is longer. For this reason, when looking for a suitable bank, it should be ensured that it offers the option of special repayments free of charge. If a little more money is left over, the borrower can deposit a larger amount, which then reduces the term.
Furniture store credit
Furniture stores also offer financing. In most cases, however, they cannot keep up with the conditions of the banks. Interest rates are nicely higher here. This approach is therefore only recommended if the banks refuse a loan for the home furnishings.