Consumer loans, installment agreements and credit card debt easily become a financial burden. Combining loans is easy and often economically sound, and paying off a few smaller loans can save you hundreds.
You do not have to pay multiple account management fees
Existing small loans or credit card loans can always be paid off at no cost (check the terms of payment with the lender), so you can combine them at any time. By combining loans into a single entity, you do not have to pay multiple account management fees.
This alone can save up to several hundred euros a year. By comparing the interest rates of different loan products, you will find the most advantageous solution for you.
Start the loan consolidation
It is a good idea to start the loan consolidation by listing your current loans and their monthly payments. Information on current loans is usually obtained from the latest invoice or directly from the company that issued the loan. Now that the amount of your existing loans is clear, it’s a good idea to ask for loan bids next.
You can withdraw the combination loan of your choice
The loan offers show the amount, interest rate, monthly installment and other expenses of the consolidation loan. After comparing the offers and choosing the best loan for you, you can withdraw the combination loan of your choice.
Depending on the company, the consolidation loan will either be paid directly to the customer’s account or the company that issued the loan will pay off the old debts on behalf of the customer. More detailed terms can be found in the loan offer.
Anna combined three consumer loans totaling $ 10,000 into one loan. Before the merger, Anna paid a total of $ 840 in monthly installments and loan servicing costs.
After the merger, Anna’s monthly payment is $ 250. At the same time, I am saving USD 25 per month on loan servicing costs, or USD 300 per year. The real annual interest rate for this example is 11.0%.