When a new year comes, a number of things often change in different areas. A well-known example of this is new laws that are introduced annually from 1 January. But also financially, January 1 is often a moment when everything changes. January 1, 2017 is no exception. And that means that consumers with a consumer credit (for example a personal loan or a revolving credit ) would do well to take a critical look at their financial circumstances at the start of the year. The chance that money can be saved on a loan is present.
Competitive loan providers
At the beginning of 2017, it is particularly sensible to take a closer look at the loans that you have as a consumer. This has to do with the (international) circumstances on the financial markets and with the fact that loan providers do their best to outdo each other for the benefit of the customer. Regarding the latter point, it is fairly clear. A lender with more favorable terms and conditions will be seen as an attractive alternative to a lender with less favorable terms and conditions. Then you quickly come to the interest rate that must be paid on a loan. And that is precisely the point at which various lenders started working together in the first month of the new year 2017.
What to do as a consumer?
Although it is probably not your hobby to investigate financial matters, it is best to take a look at the details of your loan. Various lenders have actually lowered their interest rates in the first weeks of 2017. This means that rescheduling a loan suddenly becomes very interesting: at least for those who want to save on interest costs. And who doesn’t want that? It is, of course, important to look carefully at the rules that apply when transferring a loan.
The so-called “small print” is notorious for many financial products. For example, a “fine” may be imposed when a personal loan is transferred. If that is the case, there is a chance that transferring a loan will ultimately not generate any money, but will actually cost you money, and that can never be the intention. It is therefore important to let you be properly informed about the consequences when you (possibly) transfer your loan.
Why is the interest rate falling?
The interest on consumer loans has been falling for a number of years. The year 2017 seems to be no exception. But how does that happen? One of the main reasons is the policy of the EB (the EurCen Bank). They prepare a so-called policy interest. These are official rates that are leading for financial institutions and also for countries when they (sometimes mutually) want to borrow money. The consumer market including banks and other lenders respond to these market movements. An interest rate decision from the EB therefore almost always has an impact on your consumer credit.