There are 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 financing costs during the last months of the year. What loans are not paid in December? What is really in that? The answer, below.
What loans are not paid in December? Myths and realities
Loans can be, without the right advice, complex to understand. Most people have no knowledge of this topic. In addition, there is usually small print in contracts.
The explanation of why December is a month other than the rest is key to start the holidays with greater peace of mind.
It is well known that December is a month in which the average APR of consumer loans is among the lowest of the year. In the last 5 years, this has been so more or less constant. According to several financial studies based on data from the Bank of Spain, during the last years, December was the month with the cheapest average interest. Then, June is the month where it is cheaper to apply for consumer benefits.
Reasons why now is a good time to ask for funding
One of the reasons why it is a good time is that financial institutions have not reached sales targets. Upon reaching the last month of the year without fulfilling them, they need to lower interest to increase their volume of concessions. For this reason, they offer numerous discounts to reach the amount they need and meet their annual objectives.
As for mortgages, this year is being exceptional. The Lite Lender 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 aside financial reports on personal loans and analyzing the recent jurisprudence on mortgages. Through the last ruling of the Supreme Court on the Tax of Documented Legal Acts; Banks could change their vision regarding their loan rebates.
It is more than likely due to the ruling of the Supreme Court; 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 comply with this historical trend of lower interest rates.
The answer to 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 conditions offers. In Good Credit Loans, you can compare different loan options to get the best deals that you have in December.