By refinancing and consolidating loans, you can reduce your monthly installment by up to 50%On January 22, 2020 by Ethelyn Murphy
Again, the repayment date of the loan is approaching, and you are in vain thinking of what to save to manage the monthly payment in full and pay in time? If you have already reduced other expenses to a minimum and you are still unable to repay the loan, it is time to shine on the more favorable loan conditions. These can be offered not only by your bank, but also by competing financial institutions.
It is not a question of one or two months to repay the loan, whether mortgage or consumer. The maturity is often longer than one year, and for mortgages the 30-year maturity is no exception.
Not surprisingly, the conditions that were right for you when you arranged the loan now place a significant burden on your family budget. This may be due to job loss, long-term illness or new family arrival. It is these factors that are often responsible for the fact that there is no money left for the monthly loan repayment. But what to do in this case?
Refinancing and consolidation will give you better repayment conditions
If you are unable to repay the loan, then refinance it. If you have a problem repaying more loans, consolidation comes. Both banking products will reduce your repayment to a minimum, allowing you to manage your commitments again.
What is consolidation?
Loan consolidation means merging multiple loans into one . A prerequisite is to consolidate at least two loans. Within one new loan, the client will obtain new more favorable repayment conditions.
What is refinancing?
Refinancing a loan means transferring an existing loan to a competitor and then repaying it on more favorable terms with a new lender. In practice, it looks like the new bank repays the loan to the old bank and you “pay” the rest of the loan to the new bank. You can only refinance one loan at a time.
A lower monthly payment will extend your maturity
However, even refinancing and consolidation are not omnipresent and bring one major disadvantage, namely maturity. While you may already have a loan repayment for a pair, the maturity of your loan will be longer with a monthly payment. On the other hand, the possibility of reducing installments by half is certainly worth it. Not only Equaflix bank consolidation and refinancing, but also other financial institutions will help you reduce your repayments by even 50%.
Before you go around by competing banking houses, go to your bank first and ask if it will help you to lower your interest rate and lower your monthly payment. If not, say straight away that you will transfer the loan elsewhere . Maybe under a slight threat the bank backs off and will eventually offer you more favorable terms.
If you do not get better repayment terms, it is time to move on. As part of the competitive struggle for customers, you can be almost certain that another bank will be happy to give you better terms, whether you are interested in refinancing a single loan or consolidating several loans.
- Payday loan consolidation near me -Payday loan help debt consolidation: learn more
- Which banks make personal loans?
- By refinancing and consolidating loans, you can reduce your monthly installment by up to 50%
- Repayment rate and debt restructuring.
- Building loan – interest and conditions in comparison.