Consumer Credit

If you need extra money, you could take out consumer credit. What kind of consumer credit you should take out depends on the purpose of the credit, your financial situation, and your personal situation.

 

Personal loan (expiring credit)

When taking out a Personal loan, you discuss beforehand with the lender what the fixed interest rate and the duration of the loan will be. You will repay the loan within the agreed term. 

Do you still have residual debt from selling your house? Would you like to finance a refurbishment, which does not entirely fit your current mortgage? A Personal loan meets the requirements that enable you to fiscally profit from tax deduction.

 

Revolving credit

With revolving credit, one determines a credit limit and a monthly payment amount. The interest on this kind of credit can vary. Up to the agreed credit limit, one can take out or repay credit unrestrictedly.

Revolving credit is specifically suited for those who like to have some extra money to fall back on in case of unexpected expenses. Revolving credit does in principle not meet the requirements for tax deduction when buying or refurbishing an owner-occupied home. However, Revolving credit can meet the requirements for tax deduction when funding residual debt.