From time to time, we all find ourselves lacking money in a situation we need it, and not having a quick and easy way to get it. Doing home renovations, buying vehicles, organizing events, going on vacations… All of those situations and much more could call for more money than you actually have. Furthermore, you could have wound up with some unexpected and time sensitive costs that you’ll need to cover as soon as possible, or you may want to pay off some of your debts so as to avoid the high interest rates.
Circumstances are different and you could certainly wind up in numerous situations requiring money you don’t really have. What can you do if something like that happens? A few options. First of all, you can just give up on the idea of buying the car or renovating your home, or going on vacation or doing pretty much anything else that you wanted to do with the money. As well as forget about paying off those debts or covering the unexpected costs that have come your way.
Not the happiest solution, is it? Of course not! Don’t worry, though, you have another one. Contact all the people you know, in an effort to check if someone is willing to lend you the amount you need. But, don’t get discouraged once you realize that most people aren’t willing to do that, or that they simply don’t have the money you’re asking for, as that’s probably what’s going to happen.
Even if that doesn’t happen, that is, even if you do find someone who can lend you the money this way, it’s not exactly the best option. Why? Because you’d be jeopardizing your relationship with that person, especially since you probably won’t be able to pay the money back in a short notice. So, there’s a third solution to go for, and it is actually the best one for everyone needing money they don’t have.
Get a loan. By finding lenders to provide you with loans, you won’t risk any of your personal relationships, and you will get the amount you require as soon as possible, while also getting the opportunity to repay it in monthly installments, thus not worrying about having to do it quickly and about not being able to do it quickly. A secured loan, which is further explained here, is one of the most common solutions that people use whenever they find themselves pressed for cash, so you should definitely consider it as well.
What Is a Lån Med Sikkerhet I Bolig?
What exactly is that secured loan, or a lån med sikkerhet and what does it mean when it is secured with a property, that is, i bolig? That’s what we’re here to find out. At the opposite side of this option, there’s also the unsecured loan, which is popular as well. Depending on people’s specific situations and financial circumstances, they go for one or the other, as both have their own benefits.
An unsecured loan consists of borrowers getting money from lenders without having to offer anything as collateral, i.e. as security that they’ll actually repay the loan. While this usually sounds like a rather appealing option, and while it very well can be for some people, it does come with higher interest rates when compared to the secured loan, which is precisely why a lot of people often go for that second solution, aiming at getting lower interest rates and not paying too high a price for the loan they’re getting. What does that second solution entail, though?
As you might have guessed it all on your own, a secured loan is when you borrow money from lenders and provide some of your assets as collateral. When talking of a lån med sikkerhet i bolig, it means you’ll be providing your property as collateral, most likely your home. So, basically, you borrow against an asset that you own, which is usually a home, thus guaranteeing the lender that you’ll actually repay the loan in a timely manner. And, of course, giving them the option of seizing your assets if you default. While that may sound a bit scary for inexperienced borrowers, there’s actually nothing scary about it, since you’re planning on repaying the loan, and the advantage of getting a secured one is huge so as to not be considered.
Should You Get It?
What kind of an advantage am I talking about there? Put differently, should you get a secured loan and if yes, then why? Understanding the benefits of doing so will lead to a clear answer to that question. And, the biggest advantage lies in the fact that you will get lower interest rates if you decide to go for this option, as opposed to the unsecured one. If you go to billigsteforbrukslån.com/lån-med-sikkerhet-i-bolig/, you could perhaps get a better idea on the rates you might get from lenders this way.
Why is getting a lower interest rate even important, though? Because it is what impacts the overall cost of your loan, together with the repayment period you choose and some other fees you could be charged during the processing and finalizing stages. The higher the interest rate, the more overall interest you will, obviously, pay. So, the higher the interest rates, the more expensive your loan will be.
Thus, compared to the unsecured option, a loan secured with a property will be much less expensive, which is precisely why people usually go for it. It is probably only those people that don’t have assets to offer as collateral that go for the unsecured option and agree on paying higher interest rates, because they don’t have another choice. If you, however, do own a house, then you do have another choice, and a choice that could reduce the costs of your entire borrowing process, which is certainly a huge deal.
To answer your question above as directly as possible – yes. If you need money and you have a property to pledge as collateral, then you should undeniably consider the secured loan option. Of course, be careful not to default on it, because you don’t want to risk losing that property, or part of it for that matter, due to not being able to pay the money back. Thus, remember to be careful when selecting the amount you want to borrow as well, and remember that the repayment period will impact the amount of your monthly installment, so try not to burden yourself too much and take up more than you can handle.
How to Get It?
Having understood what a secured loan is, how it works and why you should get it, there’s probably only one question still left on your mind. How to actually get one of these? While the process won’t be too complicated, it will require you to provide some important documents and information to the lender you’ll be working with, and the good part is that the lender will inform you on what you precisely need and guide you through the entire procedure, making sure you’re doing it right. There is, however, one task that will be yours and yours alone, so it is the one you should put most effort in.
That’s the task of finding the right lender. Thinking you should just make a random pick and work with the first lender you’ll come across? Not exactly the smartest move, although nobody will stop you from making it if that’s what you decide to do. Instead of deciding to do that, though, you should decide to do your research on different lenders and basically do your best to compare those and figure out which one could be right for you.
Finding websites listing various lenders can be of great help in getting you familiar with those that exist on the market, after which you should dig deeper for information, aiming at doing those comparisons. While comparing, remember to focus on the interest rates, so as to get the most favorable solution, as well as all the other borrowing fees and terms. But, remember to check the reputation of the providers too, because you don’t want to wind up working with shady ones. After doing all the research and comparing the various lenders, you’ll get to easily choose the best one for you and then follow the application steps to get your secured loan.
Iskra Banović is our seasoned Editor-in-Chief at BlueFashion. She has been steering the website's content and editorial direction since 2013. With a rich background in fashion design, Iskra's expertise spans across fashion, interior design, beauty, lifestyle, travel, and culture.