August 10, 2019 Charlotte Coleman 0Comment

More and more Dutch people are taking over their existing loan (s). In this way they benefit from lower monthly payments and more benefits from re-transfer.

Borrowing money becomes cheaper

Borrowing money becomes cheaper

Not only is the mortgage interest rate falling, but also the interest rate for a consumer credit. This means that you can now borrow money cheaper for a consumer purchase, for example a car. Was the lowest interest rate for a personal payday loan of € 10,000. still at 8.3% in 2011 (source: Moneyview). In 2018 this interest rate fell to 5.1% (source Cratchit family).

Transfer existing loan

Transfer existing loan

Consumers who already have a loan can also benefit from the low borrowing rate. By taking over your existing loan you can reduce the monthly payments or shorten the term. When transferring, you take out a new loan with which you can pay off the old loan on new and better terms.

Just like when you take out the mortgage.

You usually do not pay a fine for transferring a consumer credit. With a revolving credit, overdraft on a payment account, a credit card or a mail order credit you can pay off without penalty. A fine is charged for some personal loans but this may not exceed 1%.

That is different with the penalty interest of a mortgage. In addition, the transfer of a consumer is quickly arranged because there is no advice and notary involved.

Transfer existing loan in 4 steps:

Transfer existing loan in 4 steps:

  1. Collect the details of your current loan (s). Also consider mail order credits, overdraft and credit cards.
  2. Compare all loans and choose a new lender.
  3. Request 1 or more quotes for your current loan (s).
  4. Choose the cheapest payday loan and save.

Extra benefit with loan refinancing

Extra benefit with loan refinancing

In addition to lower monthly charges, rescheduling a loan has the following benefits:

  • Standing in red, credit card and mail order are expensive loans. A revolving credit is cheaper for extra spending room.
  • By combining several (small) loans, your savings will increase. It is also easier to keep an overview with a loan.
  • Refinancing offers the opportunity to update the terms of the loan. These too have improved in recent years.
  • In general, the older the credit, the greater the chance that you can save on this.
  • It is also possible to opt for a longer duration. This can additionally lower your monthly costs.
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