„Fast loans are taken out to fill gaps in the family budget, which is a big mistake. Fast loans are the most expensive credit product on the market – interest rates are often over 100%.“
This is what credit consultant Tihomir Toshev commented on the air of „bTV“. He recommends using credit cards or a bank loan for unexpected monthly expenses, as the interest rates there range from 12% to 15%.
Toshvev also advised not to take out a loan in the amount of more than BGN 400 in the form of a fast loan, with the idea that this amount can be paid back with the next salary. He also commented on the forecasts for the growth of interest rates on mortgage and consumer loans. According to him, mortgage rates are currently between 2.5% and 2.8%, and consumer rates are between 4% and 6%. In the case of the former, the instalments are lower and a one per cent increase in the interest rate will raise the instalment by nearly BGN 10 per month. In the case of mortgage loans, the increase will be about BGN 80 per month, and in the case of a 2% interest rate increase – by about BGN 160, Toshev explained.
The expert foresees no problems with the repayment of the mortgage loans. In case of difficulties, he advises to renegotiate the deadline and even use savings set aside for „black days“.
