The first reason to get a consumer credit (private loan) is mostly a practical one. For instance, you can have the material you need for your expensive hobbies without having to wait to save some money. Do you want to profit from a special sale? You don’t want to wait any longer to get started? Do you want to please your family now and reimburse your credit in the following months? This is why a credit for your expensive hobbies can be helpful!
People who start expensive hobbies (photography, water sports…) most of the time choose cheap material (budget prices, used equipment). This choice can lower the costs, but it can in time produce higher ones. Furthermore, this so called “cheap material” is often replaced after a few months or years. If you are sure to get started with an expensive hobby, it is better to consider to buy quality material. Therefore, a private loan can give you a sufficient sum to purchase top quality material from the begining and avoid you additional costs from buying cheap.
A credit contract is established for a certain period of time (in genral 12 to 72 to 84 months). For isntance, borrowers who sign for a 36 months contract might think that they have to reimburse their loan in those 3 years. However, it is possible to reimburse your loan with an early repayment. You can pay a higher sum per month or pay several bills in one go. This method does not only allow you to pay off your credit, but also to save money on your interests: extra paid interests are actually reimbursed.
A consumer loan can depend on various factors such as the sum that is borrowed, the interest rate and the reimbursement period. For instance, a loan for expensive hobbies that is repayed in a short term (like 12 months) does not produce more costs in terms of interest payment. A 10,000 CHF loan payed in a 10 months period can produce a total sum of 336 CHF of interest (with a 6,9 rate percentage). The reimbursement will then cost 10,336 CHF.
Another reason people don’t want to get a consumer loan is the risk of unemployment or work incapacity. How do you then pay your bills if you are unemployed? A person would only receive 70% of their salary (or 80% if there children in charge). In that case, it is possible to subscribe to a monthly insurance. Your monthly payments will be then taken in charge if you are unemployed
Often people imagine credit comsumers as being indebted and in financial difficulty. However, the market stays well regulated. The law forbids a loan to people if the risk of indebtedness is high (art. 3 LCD/UWG). Therefore, banks study carefully credit demands to reduce the risk of indebtedness. Costumers are mostly people who have a stable situation and wish to realise their expensive hobby project. They only wish to buy the necessary equipment and pay afterwards at their own pace.
MultiCredit gives for example the possibility to get a credit offer for your expensive hobbies’ purchase. Sums can go from 3,000 CHF and more with a repayment period going from 12 to 84 months. You can get a free quote and advice from our long experienced professionals in Switzerland.