Consumers spend more money, also money that they do not have. The number of loans taken out has continued to rise in recent years. The most for the transfer of overpriced loans and for cars and renovations.
According to market researchers from GFK, the number of loans increased by a quarter in 2017 compared to 2016. In the first quarter of 2018, 12 percent more loans were applied for in the Netherlands for a renovation than a year earlier. Besides that a renovation is often financed with a mortgage, this can also be paid by means of a personal loan. When you borrow money for a renovation, the interest is deductible from the income tax. Furthermore, much is borrowed for a new kitchen or new furniture.
Financial opportunities in 2019
According to the Nibud, the financial possibilities will expand in 2019. The purchasing power will increase. Those with a modest income (2100 euros net per month) will benefit most from the rising purchasing power in 2019. Wage rises, tax cuts, higher tax credits will affect almost everyone. For a family with children, purchasing power will fall in some cases. For single earners younger than 55 years of age, the general tax credit of the non-earning partner (in the popular word ‘aanrechtsubsidie’) is again reduced.
If you expect to need extra money for an extended period of time, you can opt to take out a revolving credit. For example, to pay for your child’s study. What a revolving credit is, what its specifics are and the advantages and disadvantages we have selected for you.