Saving is not easy. Everyone who wants to set aside a small sum to implement smaller or larger plans knows this. Bored Bank decided to conduct the “Generation about finances” study, according to which only 25% of respondents do not put off.
Although we try to save, it is not enough for all needs. That’s why we decide on loans. As BIK shows, we are signing contracts all the time, but has their number increased or decreased?
Higher consumer loans
Let’s start with what consumer loans are. These are loans granted for current needs. It can be buying a car, refurbishing an apartment or a dream vacation abroad. The method of repayment is precisely stipulated in the contract, and the collateral is the borrower’s income or the guarantee of the tyrant.
The amount of the loan depends on the creditworthiness of the particular customer, so it’s worth paying off all liabilities earlier, and we will definitely get a larger amount. What was the situation with consumer loans in the first half of 2020? According to BIK, the number of loans granted decreased, but their value increased.
This means that people were more likely to take larger sums. We’ll take a closer look at the numerical values to see how it really looks. The first half is 3.5 million contracts concluded. It is 2.2% less than in the first half of 2015. However, as indicated just now, their value is higher by 1.2%.
This trend agreed with the predictions that BIK was talking about. The increase in the value of loans may be affected by the lowest unemployment in 25 years and a monthly salary of up to 2.5%. This is probably due to the payment of money from the 500+ program and is an undeniable reason for the increase in the creditworthiness of many families, which could have afforded such a loan. It is worth noting that the largest decrease in the number of loans was recorded in south-eastern Poland.
The higher number and higher value of housing loans
Housing loans, as the name suggests, are loans for the purchase of a flat or house construction. Money must, therefore, be allocated to the specific purpose that the client chooses. With a home loan, you must secure it with a mortgage. The loan period can be up to 40 years because the amount collected is large and cannot be repaid within a few months. There is always an option of early repayment, however, usually associated with additional expenditure.
It is worth asking about it before signing the contract to know what costs you will have to take into account. So what was the interest in housing loans in the first half of 2020? 4.1% more loans granted by banks and credit unions were recorded. Their value also increased by 5.8%. The main revival was observed in western Poland.
However, this situation began to weaken already in June and July, which may indicate a tightening of lending policy. The following months will show whether this weakening will persist or whether the situation will change and the number of loans granted will increase again.
Fewer credit cards
According to the BIK report, fewer credit cards were issued. The difference is up to 9% – does this mean that Poles do not want to use them? Let’s first explain how they work. Credit cards are one of the payment instruments, characterized by the so-called credit limit.
The customer using the card has a certain limit to use, which he then has to pay back. A characteristic term for credit cards is the billing cycle. At the end of the cycle, you receive a list of operations made and the amount to be paid, along with the deadline by which you must do so. Let us return to the question we just asked.
Poles still use cards, as evidenced by the increase in debt on these payment instruments, which increased by 4% compared to the previous year. Although cards were issued less, definitely higher limits are set.
How to search for good offers?
Finding good deals may not be easy for everyone. How do you find favorable offers? Of course, it’s best to follow the websites of the banking institutions we are interested in.
However, if we do not have time for this, we can take advantage of an equally good offer, which are rankings of bank offers. We will receive a list of the most attractive options along with the opinions of customers who have already used the services of individual bank branches. “Still, remember not to sign the contract blindly. Reading the documents carefully will protect us from unnecessary financial problems.
Let’s also make sure that we are able to save the required amount for the monthly installment, and then we will be able to confidently sign the contract, “comments Tymon, an expert at Jabber. Smart financial decisions are the best we can do for your budget. Otherwise, it may turn out that our finances are in a much worse condition than we thought.
Current trends show that bank loans are a product constantly sought in the market. It is worth following the latest trends and looking at current offers so that whenever necessary, demonstrate knowledge of the industry and choose the best proposal that suits our needs.