More and more people are borrowing. The economy is picking up, and confidence in one’s own financial position is also improving. That is also probably the reason why the number of loan applications is increasing again. This is not only noticed in the consumer credit market. The mortgage market is also showing a strong recovery, according to the latest reports. The number of people applying for a loan is steadily increasing. Fortunately, competition is also increasing in this market. There are more and more loan providers where you can go for a loan. This also applies to the providers of mini-loans and business loans. Here too it is becoming increasingly easier to take out a loan.
Borrowing more people? But for what?
There are a number of different purposes for which loans are taken out. You can think of loans for home improvement, but of course also loans for the car. And what about transferring existing loans? Certainly now that interest rates are historically low, this can be a very good option. Because the economy picks up and consumers dare to spend again, more is borrowed (almost) automatically. The confidence is again that these loans can be repaid.
As Karin Bloemen already sang: “people dare to live”. At least people now seem to dare to borrow again.
Borrowing more people? Do we then fail?
We come from a credit crisis that is largely caused by borrowing too much? Did we not have to learn anything from this? Should we now applaud the massive borrowing again? Or does the brake need to be kicked more?
Compared to borrowing money a few years ago, many things have already changed. The lending standards have become incredibly strict and around 85% of credit applications are immediately rejected. This was different in the past. Anyone with an average income and a reasonable living expenses could get a loan at the time. That is why, in our opinion, the fear that could arise now is unfounded. You can get less mortgage and you have to pay off. Repayment-free loans, where only the interest was paid and no repayment, no longer exist. There are really big differences, and much has been learned from the past.