Refinancing Debt Through Loan Intermediaries
26 Nov 2015
When we take out loans, we always consider our financial position and only borrow what we can easily repay – but life is seldom as simple as we expect, and what may have seemed affordable repayments can rapidly become a burden.
To overcome this problem, consumers and businesses often turn to loan intermediaries in order to refinance debt. How can this help you?
Extend the time needed for repayment by refinancing debt
Supposing you took out a 5-year loan 3 years ago. You’ve already paid off a significant amount, but the payments are difficult to maintain. A loan intermediary can secure you a new five-year loan for the outstanding amount.
As a result, you now have 5 years instead of 2 to pay off your debt, and repayments will naturally be lower. This gives you a bit of welcome breathing space and makes it easier for you to stay within your budget.
Simplify your financial life
Another reason why people choose refinancing is simplification. Why have 10 accounts to pay if you can have them all in one loan and have only one monthly payment? It makes budgeting and managing your bank account a lot easier, and you don’t have to monitor a whole lot of accounts from a variety of organisations.
We also have to remember that every transaction that goes through our banks carries charges. So the more transactions you have, the more bills you pay, the higher your charges will be. Over time, it all adds up. If you have 1 payment instead of 10, you’re saving fees on 9 transactions every month.
Get a better deal
Not all credit options are created equal. If you can get a better deal on your financing, you could stand to save a lot of money. But shopping around for financial services is time-consuming and takes experience and know-how, and that’s where loan intermediaries come into the picture.
As financial services providers, they know the loans market inside out, and can find a package that will match your requirements and that could help you to save significant amounts.
When you need urgent help, consolidating debt has to happen fast
Norwegian loan intermediaries STK Finans are an example of a loan intermediary company that can get approved loans through a lot quicker than any bank. When you’re in a tight spot, you don’t want to wait, but a loan intermediary company is a big client for any lender. As a result, they can get your loan approved within minutes.
Fixed repayment plans put you on the road to a debt-free life
Loan intermediaries don’t move the goalposts. Your fixed repayment plan helps you to plan ahead, so apart from reducing the cost of debt, refinancing can put you on the road to being debt-free. Your payments won’t increase, and you will pay off everything you owe within a predictable time-frame. As long as you don’t add new debts, you can look forward to a debt-free life.