The financing of large purchases is optimally guaranteed through the long-term installment loan. In contrast to short terms, financing over long periods should be planned differently. The main goal is not the quick removal, but always to remain solvent in changing life situations.
The long-term installment loan – ensure repayment.
The long-term installment loan ensures that even large sums can be financed. By choosing the long repayment period, the loan can be reduced in moderate steps. Big wishes like a house or a new car can be realized. However, the long term has not only positive sides. Life is constantly changing. Except for civil servants, nobody has a lifelong job guarantee today. Constant professional biographies, which were normal in the past century, are rare today.
So your own professional future can no longer be planned safely. For credit obligations, this means that, if possible, they should be provided with additional collateral for the “bad” times. A residual debt insurance policy that covers the risks of unemployment, illness and death. Unfortunately, this protection is not always affordable for long-term loans. Nevertheless, it is important to enjoy the greatest possible level of security.
Without residual debt insurance, only the amount of the installment can be planned in such a way that income losses can be absorbed. In addition to a possible job loss, future funding needs should not be forgotten. It is important to remain creditworthy when planning large investments. Putting everything on one card to pay off the loan more quickly often ends up in debt restructuring.
Future security at a fixed rate.
In addition to the lowest possible rates for long-term installment loans, there is another factor to consider. Interest is not automatically a permanent fixed interest for the entire term. Working with a variable interest rate for large and long-term financing is a roulette game. The key interest rates could rise, making the loan more expensive and, above all, unpredictable.
Fixed interest rates are somewhat more expensive to conclude, but they ensure the current and therefore affordable level for the future. The long-term installment loan is thus securely repayable up to the last installment.