Replace your loan when interest rates are still low. You compare the interest rate and that’s it, in your opinion. But it is not that easy. There is more than that. Besides a low interest rate, other issues also play a role. Such as overrun costs and the new term. Read these tips on how you can save on your loan.
Benefit from a lower interest rate
When you are transferring your loan to a new loan, it is wise to compare the interest rates. Currently, the interest rate is still relatively low. Through a credit broker, you can already take out a personal loan at an interest rate of 4.1% or more. Take a look at online interest rate comparators to compare interest rates and loans for each type of loan.
Save on your monthly costs by combining loans
Do you have multiple loans outstanding? Then merge your existing loans.
By merging your existing loans into a new loan, you can save a lot of interest. In addition, you can lose your bonds faster, which means you will have paid off your debt sooner. By merging several loans, you also create more synthesis. It’s a pleasure.
This applies not only to a personal loan or revolving credit, but also to costly post order credits or credit card overdrafts.
In addition to the advantage of the interest rate, you can also transfer your loan to shorten the term. If the term is shorter, you pay interest over a shorter period. You pay off faster, so the amount you pay interest on decreases faster. In the longer term, the monthly amount to be reimbursed is lower. But in the end, you are more expensive because you are paying interest over a longer period of time. A short term loan is therefore more advantageous.
Check if there are transfer fees
Check the terms and conditions to see if there are any costs involved. And if so, if it’s advantageous. If you take out your loan, you will borrow money again to pay off your old loan. However, your new loan has a lower interest rate and probably has better terms.