Do you want to borrow money, but on the other hand do you want to be sure that you can (continue to) pay the costs? It is wise to make a simulation in advance, both for a credit opening and an installment loan. You will then get a good picture of the costs that you must take into account. You can also take out insurance. If you run into problems and can no longer pay the costs of the loan, you can apply for the cover.
Incapacity for work or job loss
Are you taking out insurance, such as the Cofidis Guarantee + coverage? Then you opt for coverage against job loss and disability. In that case you can no longer make the monthly repayments, so that the insurer will take over. Are you dying or are you permanently disabled? Then the insurer will repay the remainder of the loan in full. You make sure that borrowing money won’t get you in trouble. Instead, you can be sure that you can continue to make monthly payments, whether a safety net is available.
Of course you pay costs for such insurance, so it is important to take this into account. In many cases, you pay a small percentage of the remaining balance due for a cash reserve. You usually pay 0.5 – 1% of the outstanding debt. Have you taken out an installment loan? Then there is a good chance that you pay an average of 5% of the monthly repayment for such insurance. You incur slightly more costs to borrow money in exchange for some extra security.
Make a trade-off between the extra security that you enjoy thanks to the insurance, compared to the costs that you must incur for this. Do you want to borrow money as cheaply as possible, or is it important for you that you can continue to pay the costs? The moment you lose your job, chances are that you will receive much less income, so that loans often form a block. Compare the different loans with each other and pay the insurance premium, for example, for the advantage that the cheapest loan provider has to offer you, so that you can profit from it advantageously.