Although there may still be a taboo on it, borrowing money is part of life. Many people choose a loan to finance their home or buy a car. But there are also people for whom a loan cannot be taken for granted.
For example, because they are entrepreneurs or older than 60 years. This week I want to pay attention to this last group. Because fortunately there are also responsible solutions for people over 60. So that they too can live the way they want.
Single-person households sometimes have difficulty making ends meet
After a lifetime of work, it’s time to enjoy your well-earned freedom. Research from Goodbank shows that people over 65 are generally satisfied with their income. Almost one third indicates that they can (very) easily make ends meet.
That is good news. Yet there are many elderly people who have trouble making ends meet. Single-person households in particular sometimes have difficulties. Normally, borrowing money offers a solution, but seniors often face a wall of strict conditions.
Risk for banks
It is becoming increasingly difficult to take out a loan from the age of 50. While you may still be in the middle of life and want to fully enjoy yourself. Cru said, this is because the chance of death increases.
That is a risk for the bank. Because he would like to see the money borrowed again. For younger people, banks cover this risk with a term life insurance policy. But it is often no longer possible to take out such insurance for the elderly.
Special loans for people over 60
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In 2014, almost 12% of the Dutch population were older than 65. That number continues to rise, to 4.7 million (26%) people in 2020. I believe we, the financial service providers, can no longer ignore people over 60. That is why we offer two loan products together with our partners, specially developed for the vital elderly.
Namely the Continuous Credit 60+ and the Personal Loan 65+. The interest is higher than for young people. But in this way it is possible to take out a loan. This way you can borrow money responsibly until you are 68 years old. And fully enjoy life. Always with remission of up to € 12,500 in the event of the death of the first contractor. You can also co-insure a second contractor or a higher loan amount.
Beware of expensive credit cards and being in the red
After the good news another warning from my side. A warning that you have probably seen before in my blogs. Because no matter how tempting it is, beware of borrowing via credit cards and being in the red. It is an easy, but also incredibly expensive form of borrowing money. Interest rates of up to 14% are no exception. A waste of your money! Certainly because you, as a person over 60, already take out a normal responsible loan from 6.9%. So always delve into the alternatives and choose the loan that suits you best!