If you are considering a loan of DKK 20,000 for vacation, unforeseen costs or just for the small surprises of life, it is a good idea to have the costs in mind. The interest and fee differences that exist on the various offers available can make a big difference to your expenses beyond the money you initially borrowed.
The following article is written to give you some examples of what $ 20,000 can cost you from some different fictional parameters. Parameters that we have determined to give you an insight into how the loan costs are determined.
It can cost you 20,000 kroner
There are some different things that are fixed when you take a loan. These are things you get informed before signing the contract from the provider. We have set the following four parameters for you, as we have assumed in the calculations. What it costs to take the loan, that is, the formation cost and the interest rate, is not always the same, so we use an imaginary example:
- The principal: DKK 20,000.
- Debt rate: 6 and 8 percent
- Maturity: 72 months (6 years)
- Founding cost: NOK 500
The above is an example of two different loans, where all parameters are the same, except that one loan has a debt rate of 6 percent and the other has a debt rate of 8 percent. If one calculates the price difference with the two different interest rates, one will arrive at the following:
The interest rate of 6 percent gives total costs of NOK 4,344, total benefit of DKK 23,844 and an APR of 7 percent before tax.
The interest rate of 8 percent gives total costs of NOK 5,710, total service of NOK 25,210 and an APR of 9 percent before tax.
In the above example you can save 1,366 kroner just by achieving a lower interest rate on your loan. In a situation where you are already out and borrowing money, it is a good idea to save as much as possible. The calculations are made by using online loan calculators that are freely available. They are suitable if you are in doubt about something or want to know what a loan will cost you in the end.
Also check out the list of where to borrow 20,000 online .
Request more offers
Although $ 1,366 does not necessarily seem like a huge amount in your eyes, it can quickly become a lot of money if you are not price conscious in your choice. It is important to keep in mind that you can always search and obtain offers and prices for free.
It is non-committal and will therefore remind you when you, for example. Obtaining deals on a painter or plumbing task. Here you should not just choose a random one, as you can easily end up with a solution that is many thousands of dollars more expensive than necessary. Be price conscious and it pays off.
When it comes to loans, it is the interest rate and APR that tell the most about the price. Therefore, it is a good idea to try to achieve as low an interest rate as possible so that you get as much savings on your future loan as possible. Also keep in mind that you should always read through the entire loan contract before signing the agreement. So you know exactly what you’re going to do.