A project is close to your heart, but you hesitate to make it happen for cost reasons? A loan can be an interesting solution to finance your leisure. Discover 6 good reasons to use this too often overlooked solution!
1. Take advantage now, pay later
The first reason for using a consumer loan is above all practical: being able to buy the equipment without having to wait to save the necessary amount. Do you want to take advantage of a special discount? Don’t you want to wait several months before getting started? Do you want to please your family now and pay back in the months that follow? This is precisely where a leisure loan can help you!
2. Choose the right material from the start
People who are starting out in an expensive hobby (water sports, photography, etc.) often choose to start with inexpensive equipment (“budget” brand, used equipment). If this choice obviously reduces costs, it often generates a higher expenditure over time. Indeed, this “cheap” material is often replaced after a few months or years. If you are sure you want to get started, it may be worth buying quality equipment from the start. A private loan then makes it possible to have sufficient funds to buy good quality equipment the first time, and avoids several successive purchases.
3. Repay at your own pace with prepayment
A credit contract is established for a defined period (generally from 12 to 72 or even 84 months). Borrowers who sign for 36 months, for example, imagine that they have to repay their loan over the entire duration of the contract, ie 3 years. However, it is quite possible to repay a credit in advance, either by paying a higher amount each month than that indicated on the payment slip, or by paying several invoices at once. This not only allows you to settle your credit more quickly, but also saves on the interest paid: the interest paid in excess is then indeed reimbursed!
4. A cost that remains moderate, especially in the short term
The cost of a consumer loan obviously varies depending on the amount borrowed and the interest rate charged, but also according to the repayment duration. Thus, a leisure loan reimbursed over a short period (for example 12 months) generates only few costs in terms of interest paid. For example, a credit of 10,000 dollars over 12 months implies a total interest payable of only 366 dollars (rate of 6.9%). The total reimbursement therefore amounts to 10,366 dollars.
5. Insurance in the event of unemployment or incapacity for work
One of the reasons that sometimes discourages consumers from taking out credit is the risk of unemployment or incapacity for work. How can you pay your monthly payments in the event of unemployment, where the person will then only receive 70% (or 80% if dependent children) of their income? For this kind of case, it is quite possible to take out monthly insurance. The payment of the monthly payments will then be taken care of in case of unemployment for example!
6. Little risk of over-indebtedness
Consumer credit sometimes evokes images of people in debt or financial difficulties. However, the market remains highly regulated. Thus, the law prohibits the granting of a credit if it risks causing overindebtedness of the consumer (art. 3 LCD). The banks carefully study each request in order to minimize the risk of over-indebtedness. In the vast majority of cases, the borrowers are people with a stable situation who simply wish to finance a project such as the purchase of leisure equipment while reimbursing the purchase “after the fact”, at their own pace!
Crédit-Bancaire offers for example the possibility of obtaining a credit offer for the purchase of leisure equipment with amounts from 3,000 dollars, repayable over 12 to 84 months. Possibility of obtaining a free offer as well as advice from a specialist active for many years in Switzerland.