In the life of a person there can be a desire for something that you want to fulfill without having the necessary change. Fortunately, there are enough providers who are available for this. Then, finally, the wish was fulfilled by means of the sometimes liberally granted loan and the repayment is already in the house. And that often goes hand in hand with the first headache.
But the fact is that banks and savings banks hardly care about the borrower’s headache. The question of whether it should have been better to save the money from this loan is actually unnecessary.
Saved by credit?
The fact is that you won’t get a loan that will actually save you some money. Even in the gray days of banking, clever money lenders who had only cultivated the system knew how to take profit from lent money, i.e. to take a given loan. Nothing has changed to this day. Even then it was considered that such a borrower was in arrears with the repayment and charged a certain percentage additionally.
It is also a fact that you are well advised to repay a loan amount as quickly as possible. Any possible delay rates represent an essential and additional financial hurdle that only imposes an additional burden. The percentage load is in the double-digit range. Hardly any bank or savings bank sees room for maneuver here. So there can be no question of saving. But on the contrary.
The credit, a savings trap?
Banks, savings banks or other companies, including those companies that sell goods on credit, speculate with the wishes of potential buyers. Taking into account that one or the other customer fulfills a wish that he cannot afford. Of course, lenders know this. In any case, you shouldn’t be surprised. Because banks and savings banks are primarily interested in one. Profit! But the fact is that there is another way. Without credit and the old-fashioned way. Saving!
The motto is saving
Admittedly, saving has been somewhat forgotten.
Only with the increasing industrialization and the increased consumption behavior of the people, which was only nourished by the companies and which continues to this day, has it been forgotten how society behaved in earlier times. She just went there and saved herself the money she needed for her wishes until they could fulfill the wish.
Although this procedure requires a little patience, it has the main advantage that you then did not have to stand for the interest to come and thus, in the end, had to shell out a whopping 40 percent more for the object that you wanted.
The only sensible way to save money is to only make a wish come true when you can afford it.
In any case, there is no saving if you fall behind with a loan. Because, firstly, the lender demands full percentages for a sum that remains unchanged, and secondly, you also lose the joy of the object that you have paid for the loan. Admittedly, if you put your earned money in a savings account, you won’t get any great interest income.
But it always has advantages. You get at least some, albeit small, growth in the form of interest, the money is generally in good hands and you prove to be steadfast against your own, sometimes unnecessary, wishes. Saving is therefore the most sensible, if somewhat longer variant, if you want to fulfill a wish.
Nevertheless, there are situations in which you are in acute financial need. Here you should always try to keep a cool head in order to find the most favorable conditions for your own needs.