Back to School – financing tips
September arrives and, for those with school-age children, a new period begins with a substantial financial burden that, bearing in mind current inflation, can be an uphill struggle.
It is possible that you are thinking of resorting to some type of financing to cover these expenses. Therefore, if this is your case, we would like to remind you of these tips.
Possible options are that you can arrange a personal loan or finance the purchase with a credit card. For the same amount, the cost usually differs depending on whether you use one or the other form of financing.
That is why it is important that you look at the Annual Percentage Rate (APR), which reflects the price you will be charged for borrowing the money and it also includes charges and fees. Don't lose sight of it.
It is possible that for this purpose (purchase of school materials, books, uniforms, etc.) you may be offered financing with an APR of 0%. In this case there is no doubt, the total cost is zero.
On the other hand, it is important that when you go to apply for financing you calculate how much you can pay per month. If you pay a small instalment, you will pay off the loan over a longer period of time, while if you choose a larger instalment within your means, you will pay off the debt in a shorter period.
Set yourself a maximum budget and plan what you really need to buy. And don't forget to compare prices.
Another option is the so-called "fast loans" that we inform you about in this post. They usually have a higher cost than traditional formulas and you should remember that most companies that grant this type of financing are not supervised by the Banco de España.