In the modern world, one of the ways to solve financial issues is credit. And it often happens that in one family there are not one, but two, three, five loans. At some point, monthly payments can greatly affect the budget.
It also happens when, for other reasons, payment of several loans begins to cause discomfort – their repayment places are located in different places, plus various amounts and payment dates that you always need to keep in mind so as not to go into arrears.
The way out of the situation could be the refinancing of existing loans into one general loan. This will reduce both monthly payments and the total amount of debt obligations.
When to think about refinancing?
If the loan you took was uncomfortable for you. If you take one loan so that there is something to repay another, and this cycle seems impossible to stop.
If you have several loans with different interest rates in different banks (which means several dates and amounts of payments that you need to remember).
If you bought a car on credit – by refinancing a car loan, you will remove the burden from the car and be able to dispose of it at your discretion. This will help to avoid additional costs, for example, the purchase of insurance when buying a car on credit.
How does a refinancing loan work?
The loan refinancing process itself is standard: there is no need for collateral or surety of third parties, there is no commission for granting a loan, only a standard package of documents is needed (application, passport, personal income tax certificate or in the form of a bank and a document confirming employment, as well as a certificate / statement with information about the refinanced loan).
For customers who receive a salary on a bank card, they only need a passport and a certificate / statement of a loan. You can repay the received money up to five credits from third-party banks, and this happens automatically – by wire transfer and without commission, so there’s no need to transfer “live” money from one bank to another. A valuable opportunity, if you imagine how long it would take to repay these loans “manually”.
Thus, it is possible to refinance a consumer loan, a car loan, a credit card, an overdraft received in rubles.
The advantages of refinancing a loan are obvious: in the absence of extra time, you can get one general loan at an attractive interest rate instead of several different and, possibly, reduced monthly payments.
Refinancing with is likely to reduce your total debt. But most importantly: you can spend most of the family budget on what you and your loved ones need.