There are only a few days left until Christmas arrives and many people are already thinking about how to deal with the extra expenses on these special dates. Financing becomes essential in times of need. For this reason, it is important to know the trends in the cost of financing during the last months of the year. What loans are not paid in December ? What's the truth in that? The answer, below.
What loans are not paid in December? Myths and realities
Loans can be, without proper advice, complex to understand. Most of the people are not knowledgeable about this topic. In addition to this, there is usually small print in contracts.
The explanation of why December is a different month from the rest is key to starting the holidays with greater tranquility.
It is well known that December is a month in which the average APR for consumer loans is among the lowest of the year. In the last 5 years, this has been the case more or less constantly. According to various financial studies carried out using data from the Bank of Nigeria, in recent years December was the month with the cheapest average interest. Then, June is the month where it is cheapest to apply for consumer benefits.
Reasons why now is a good time to ask for financing
One of the reasons why this is a good time is that financial institutions have not reached their sales targets. When reaching the last month of the year without complying with them , they need to lower interest to increase their volume of concessions. For this reason, they offer numerous discounts to get to grant the amount they need and meet their annual objectives.
In terms of mortgages, this year has been exceptional. The Euribor has stabilized at record lows; which will allow families greater ease of access to a home.
December 2019, a special month
However, this last year has been special. Leaving financial reports on personal loans aside and looking at recent case law on mortgages. Through the last ruling of the Supreme Court on the Tax on Documented Legal Acts; banks could change their minds about their loan downgrades.
It is more than likely due to the Supreme Court ruling; financial institutions increase the costs of personal loans instead of lowering them, as has been the case in recent years. This year, the month of December may not meet that historical trend of lower interest rates.
The answer on which loans are not paid in December . It is credited that December is a month in which sales increase; therefore, it is the best month to offer financing terms. In Ideal Loans you can compare different loan options to get the best offers for the month of December.