The first thing I want to tell you is that getting into debt is not bad and it is often advisable. Having cash in cash is becoming more difficult every day, so we’ll see how financing can be used intelligently, without over-indebtedness and paying the minimum interest.
Buying a new car, furniture, paying for a vacation or studying are some of the most common reasons why Spaniards often seek financing. But let’s see different ways to finance our purchases for free or at the lowest interest rate:
Pay your purchases in installments
This is the formula that many businesses use , offering their customers to pay what they buy in installments. In case there is the possibility of financing our purchases at 0%, we should only look at the fact that the sum of the installments to be paid is equal to the total amount of the purchase.
The formula for paying our purchases in installments without interest is the most attractive. But there are also shops that use other methods, such as: offering a grace period during which we will not have to pay anything or pay a small interest for that postponement.
There are companies and banks willing to advance our payroll without charging us interest , so this may be a way to explore.
Pre-granted loans: most banking entities make this type of loans available to their clients. As we are already linked to the entity, they do not usually ask us to deliver more documentation, so the concession period is practically instantaneous.
Personal loans without interest
Free loans are granted by financiers who reward new customers in this way . Currently they are offering up to € 300 without charging interest or commissions , with a very short repayment term, usually 30 days.
All entities and financiers offer this type of financing , our job is to find the one that offers us a cheaper operation and negotiate with them. For what we will consider:
- Interest rate put to us
- Commission for opening or cancellation
- Hiring products
- Any other expense
This is one of the easiest ways to pay for our purchases in installments , but it is also one of the most expensive , so it should be left as a last option. Keep in mind that the interest rate applied can reach 22% APR, which would be, for example, what the ING Direct entity would charge us.
Large area cards
This is a formula that only large stores use , each one applies its own conditions, but as a general rule we find that they offer us a maximum postponement of between 3 and 12 months, with an interest rate of 0%. Some charge management fees (El Corte Inglés) and ask us for a minimum purchase amount.
Things to keep in mind
- The financing of our purchases helps us to acquire what we need, in case of not having the money at that moment, but we must always establish a budget and not exceed it .
- Before launching to buy, it is good that you have clear what your needs are.
- You must calculate what your income is and what amount you can allocate to the payment of the installments, that will help you to define the term in which you will finish paying it.