Do you want to borrow money to reschedule your current expensive loans? Use the following steps to ensure that you get a better overview of the situation in a relatively simple way and that you are likely to pay less interest. This means that the costs of the credit will decrease, while the overview will make it easier for you to make repayments and interest payments on time.
Overview of credits
Do you want to borrow money to rearrange the expensive loans? Then it is first of all important to provide an overview of the current loans. Where do you currently have a credit facility and how far are you to repay it? List the various agreements and try to get a good picture of the outstanding debts. Many people who borrow money do not know what they have borrowed where and therefore end up in trouble. Make an overview and write everything down so that you know exactly which bank you have to repay which part of which debts.
Apply for a new loan
Add up the various amounts that you still have to pay back to arrive at the total for which you want to take out a new loan. You must borrow the amount of the various loans together in order to be able to repay them at once. Keep in mind, however, that it is not always possible to repay all credits at once, in some cases there is a penalty interest. You can read this in the conditions and include the costs thereof in the total assessment, by comparing this with the savings that you can achieve. You can then apply for a new loan for the amount that you need to repay the other loans.
Overview and costs
Did you apply for the new loan to be able to pay off the other loans? Tell the lender that you have the goal of making one loan out of this, so that you have an overview of the whole. There is a good chance that the costs will ultimately be lower, based on a sharper interest rate. Borrowing the money to rearrange expensive loans ensures that you have a better overview and spend less money on the loans.