A lender has the duty to investigate whether you can bear the burden of a loan. You must provide information about yourself for this.
The lender, when determining which monthly expenses you can bear, always takes into account:
- Your income
- Your household composition
- Your housing costs
- Other credits that you have now run. For this they do a test at Bureau Credit Registration.
- Other personal obligations that you have
- Whether or not you have paid credits in the past. For this they do a test at Bureau Credit Registration.
You yourself should ask yourself how much you want to borrow. With the Personal Budget Advice you can get a picture of whether the costs of a loan fit into your budget. You can do this by filling in the Personal Budget Advice and also filling in the costs of a loan. The more accurately you enter your data, the more insight you get.
- Also take into account unexpected or extra costs or with special expenses such as payments to alimony or childcare.
- If less is left, you have to cut costs. Can you manage that? And how long do you keep that up? It is important to look at this honestly. Can you also pay your compulsory expenses such as fixed costs for your home and living expenses in the new situation?
- Is it necessary to save on your free expenses (such as vacation trips or sports)?
- When in doubt, try to save a fixed amount every month. Can not you? Do not take out a loan because it probably will not be possible to repay.
Do you have too little left? Then consider another solution.
Maybe you can postpone the purchase or opt for a cheaper alternative (for example repair instead of replacement).
To the Personal Budget Advice
A loan involves financial obligations for a longer period. Changes may occur in this:
- Perhaps your situation will change, for example pension, unemployment or incapacity for work. Can you still incur the costs?
- Do you expect your expenses to go up? For example for maintenance of your home? Or because your school-going children are going to cost more? Check whether there is still room in your budget for repayment.
- Ensure that the loan does not run longer than the period that you use your purchase. For example if you buy a car. If you use this car for five years, you must be able to pay off the loan within five years. Can not you? Do not borrow or a lower amount ..
47 % of households has one or more forms of loans or debts
Pay attention! Borrowing money, costs money
- Financial undertakings are obliged to include this warning (from the DSRs) in advertising messages for all credits. So you know that certain offers are actually a loan.
- Do not just be guided by the interest rates mentioned, but also look at the repayment period, the monthly costs and especially the total costs of the loan. The total cost of the loan is used to calculate how much interest you pay in total. This allows you to determine which loan is ultimately the most expensive.
- The interest rate may be lower if, for example, you take out a term life insurance policy at the same time. The interest rate can only apply to new customers or to a loan from a certain amount.
Tip: It is also important for suppliers with a permit from the DSRs to look carefully at the conditions.
If you have a complaint
Credit providers have a duty of care that is laid down in the Financial Supervision Act.
- All information must be clear and ‘transparent’. A lender must have a license from the Netherlands Authority for the Financial Markets (DSRs).
- If you have a complaint, first send a letter to the management. If the company does not come up with a suitable solution after following the complaints procedure, you can submit your complaint to the Financial Services Complaints Institute (Kifid).
- If you feel that a financial institution has not provided enough information or you encounter a form of misleading advertising about financial products, you can report this to the DSRs’s Financial Markets Information Line: 0900 – 5400 540.