To take out a loan, even for things that might constitute a relatively minor expenditure, is a very real option for many in Germany today. It is often also the only way for many to achieve their aims without having to scrimp and save for ages in advance. Many unforeseeable occurrences in daily life (i.e. the breakdown of a washing machine or car) require immediate investment to set right. When these things happen it is not realistic to just wait around until the money's there to spend. However, when taking out a loan the following questions need to be carefully considered:

• What is the money for? • How much is required?

• Which lender should be approached?

At this point it is advisable to compare loan rates from different providers in order to find out which lender has the perfect solution to one's individual requirements. As a result of intense competition the range of loan deals, Kredit, is more varied and expansive than it has ever been in Germany. And it is no longer the case that interest rates alone restrict the range of Kredit on offer: because lenders earn more through loans than with any other financial product they promote and structure their products these days with unprecedented energy and creativity, in order to win new custom.

And when a lender has has someone in their clutches through a loan, that same person will soon receive inducements to do more business with that provider. Loans are seen as a doorway (or a trapdoor!) to new business. It often happens that potential borrowers feel themselves completely at sea confronted with such a surfeit of products. In this position it is all too easy to seize upon the first offer that comes to hand: normally from the provider of one's familiar current account. This can be an error, dependent on the loan amount, and it can be an error that ends up costing the customer a sack of money.

Recent experience reveals a tendency in the German market (which mirrors the developments in the Anglo Saxon financial sector) which sees the online Kredit branch offering increasingly sound deals. Of course here the administration costs that would weigh upon the high street customer do not apply

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