We have to admit that there are currently many different situations in which we often can not do anything else than to take out a loan.
For years, financial experts have pointed out that borrowing money for a consumer actually means that losses are incurred.
You have to pay a certain interest on the amount that you borrow, so that there can indeed be a certain loss. However, it must be said that this does not apply to all situations.
Sometimes you can, for example, borrow money without having to pay interest, and in certain cases it is even the case that a product or machine can pay you money instead of costs.
Do you ever ask yourself when borrowing money is interesting now? Read on quickly, because the answer to this is given in this article!
Borrow money without having to pay interest
The moment you need extra money, for example for the purchase of a very expensive one, chances are you immediately choose to contact one or more banks.
Do not get us wrong, there is nothing wrong with that, but as said, these banks will want to earn some money from you.
In concrete terms, this means that you do not only have to take into account the repayment of the sums received, you will of course also have to pay the interest owed.
However, it can also be different. Have you, for example, ever thought of taking out a private loan?
A private loan is a credit that is not taken out with a bank or another financial institution, but with a different, private person.
This can be a friend, but also a family member for example. For example, many people use a private loan to finance the amount they need for their own contribution to the purchase of a house. In such a case, the private loan is usually concluded between the parents and their children.
It is determined on paper how long the amount of credit must be repaid and how many disks this should be done. Finally, a certain interest may also be agreed, but this is not mandatory. As a result, interest-free borrowing is made possible without any problem.
Can borrowing also be profitable?
Borrowing money can also generate money instead of money. However, honesty requires us to say that this is especially true for companies.
When a company purchases a certain machine and borrows money for it, it can count on several advantages, namely:
- One does not have to invest with own resources, so that sufficient cash flow remains. As a result, the chance is considerably smaller that the company is in financial trouble.
- The purchased product or machine can already give money during the repayment of the loan. As a result, it may even be profitable from day one.
- The spread of purchases of an expensive item always gives you the greatest advantage in financial terms. You could in principle also choose to rent, but then you will never own the machine or the product in question.
The above advantages ensure that companies nowadays increasingly choose not to rent anymore in practice, but to conclude a kind of lease-purchase agreement.
Another possibility is that they simply fully fund the purchase amount at a bank or other credit institution.
So in any case certainly do not just assume that borrowing by definition is always bad, after all, it is certainly not.
Be attentive to unnecessary credits
Finally, a small warning. The above information does not mean that you always do well to borrow money for a particular purchase or investment.
There are, for example, many situations in which it is actually not really interesting to borrow money, but as a consumer you probably simply can not do otherwise.
The most important example of this is of course the conclusion of a car loan. Many people do not just have the amount needed to buy a car, so they take out a loan for it. In this case you actually have to deal with loss twice.
On the one hand because a car usually only loses value (old timers left there), but also because an extra cost is charged by the bank’s financing.
Because you often have no choice but to take out a loan like this, it is all the more important that you try to avoid useless loans such as consumer credits as much as possible.
Only in this way will you be able to permanently enjoy a stable and healthy financial situation.