Change of location will result in high sums
Financing moving costs with a loan is the ideal way to prevent an impending funding gap. In many cases, a change of location will result in high sums that often overwhelm the consumer’s budget. Anyone planning a move should therefore not underestimate the associated financial effort.
Especially when the tents are about to be demolished at short notice, there is often not enough time to build up appropriate reserves. The expenses range from deposit and commission payments, renovation costs to moving house and fees for re-registration and forwarding request. Even if it seems convenient – to cover these costs promptly, it is not advisable to overdraw the current account. Because the use of the discount framework, whose interest rates are often in the double digits, is one of the most expensive forms of financing. In addition, the availability of the overdraft facility is often not sufficient to fully cover the removal costs.
Far more advisable to manage
On the other hand, it is far more advisable to manage the move using a low-interest installment loan. Anyone who has opted for this financing option is best to use an online loan calculator. This form of loan comparison not only gives consumers a transparent overview of the different loan conditions of different banks, they can also conveniently search for the offer that is most convenient for them. In addition, online loans are often cheaper because there are no branch and personnel costs on the Internet and online banks can therefore offer more attractive conditions.
Various loan offers
When comparing the various loan offers, it is particularly important to take a close look at the APR because, in contrast to the debit interest rate, it shows the total loan costs. In addition, it is important to consider the special conditions of the respective loan, such as free special repayments or installment breaks, tailored to the individual circumstances.
In the run-up to the loan comparison, however, it is essential to calculate the costs of the move as precisely as possible. If the financing requirement is set too high, liquidity difficulties can sometimes arise during the term. If the estimate is below the actual costs, the remaining funding gap unnecessarily burdens the budget.