For a long time borrowing extra money, taking credit, was seen as a sign of distress. In the thirties the stereotypical debtor was a pauper who turned to a usurer in poverty in order to alleviate his acute need for money. Government intervention was needed to combat the abuses that ensued. A different situation emerged from the late 1950s. As a result of the general increase in prosperity, real wages also rose and broad sections of the population were given a so-called discretionary income. The income did not go entirely to the fixed costs, but a part remained that was freely disposable and could, for example, be used to repay credit. Many employees thus became creditworthy.
Furthermore, the increase in home ownership, an investment that is largely mortgage-financed, has contributed a lot to making Borrowing acceptable if you already have a loan. The tax deductibility of interest obligations also contributed to creating an environment in which borrowing was seen as a rational economic activity.
Moreover, there was a fairly high level of optimism about the future at that time, which is an important psychological condition for many people to enter into credit commitments. Gradually the taboo character disappeared which surrounded the making of debts. Borrowing extra money became more and more normal.
The continued development of social security has also had a major incentive effect on people’s willingness to take on debts. Because the future income is partly insured, there are greater possibilities for entering into future obligations.
Today, one in three families has a loan, consumer credit, and 40% of households own a home that is mortgaged. Borrowing if you already have a loan has become a normal phenomenon in all walks of life.
Broadly speaking, the market is divided into three segments. The financial upper layer of the market is directly served by the banks, the middle groups are the clients of the financing companies (subsidiaries of the major financial institutions), while the lower layer is connected to the credit market through the intermediary channel.
Borrow cheap money for small and medium-sized businesses
The banks in the Netherlands are already having a hard time, but perhaps small and medium-sized businesses (SMEs) are having a harder time. Many of these companies are in trouble because of the economic crisis and the future is uncertain for many companies.
The companies seize loans from banks, but then come home from a cold fair. Many banks no longer want to grant loans to small and medium-sized businesses, due to the uncertain future. However, due to this development, there is a risk that the economy will fare even worse.
Borrow money quickly without hassle
When banks do not want to provide loans, it is often more difficult for companies to continue to exist. They have few options left for extra money. Borrowing money directly from, for example, family is often not sufficient to allow a company to continue. They could of course take out a personal loan or revolving credit (depending on the type of company), but then you really have to go to the banks for this. The government has now pointed out to the banks that the economy should not be stagnated by not granting loans. Borrowing money directly will soon hopefully be possible for small and medium-sized businesses, because otherwise the future of the Netherlands will look even more bleak.
Borrow extra money for the holidays
Sinterklaas was already expensive enough, but now Christmas is coming. The holidays are expensive. For example, the food costs a lot, but the gifts also cost a lot of money every year. Many Dutch people love the holidays, but also experience the holidays as very expensive. We didn’t even talk about New Year’s Eve. Fireworks cost more money each year. It’s not for nothing that a popular gift is a state lottery ticket. Everyone dreams of winning the state lottery. Unfortunately, the chance is simply small.
In short, money plays a role in our lives, whether we like it or not. Maybe it will play an even bigger role during the holidays. Many people are just before the holiday season to borrow some form of direct money. Temporarily borrowing cheap money to get through those holidays. Borrowing extra money costs money, but at the same time we just want to have fun holidays. And nowadays, fun often means money. Unfortunately but true.
If you are looking for a form of borrowing extra money for the holidays, it can ideally be in the red or with a mini loan. These forms are fast loans. Being in the red is financially more attractive than a mini loan in terms of interest. Borrowing money with a loan costs money and when the holidays are over it is of course not nice when you start the New Year with a big debt. So borrow responsibly! The holidays always arrive quickly. Often you are busy with many other things for the holidays, such as preparations for a party. Borrowing extra money can be a solution. You can borrow money quickly with a mini loan: the ideal way to borrow in a quick way.