Great Personal Finance Tips Loan Is it wise to combine loans the monthly burden can fall considerably

Is it wise to combine loans the monthly burden can fall considerably

Whoever has several loans to his name, can sometimes no longer see the trees through the forest. What solutions are there then? You can save by merging loans.

Merging loans can be interesting. Anyone who has bought a new car on installment and is now forced to install a new kitchen may be wise to combine loans. An extra personal loan takes a substantial bite out of your monthly budget. That is why the majority of lenders in our country offer you the option of consolidating loans, or merging loans. What does that mean for you?

Merge loans – merge certain credits into one credit

Merge loans - merge certain credits into one credit

By combining loans, the monthly burden can fall considerably. After all, the Best bank allows you to merge certain credits into one credit. You can agree a new installment period in consultation with your lender. You can also decide to add the repayment of a loan to such an aggregation. In that case, the Best bank will close your credit card or reset it to 0.

But what should you pay attention to when merging loans? First of all, take the annual percentage rate into account. The posted rates may differ considerably. For example, anyone who calls on Best Bank for a grouping of loans (worth 20,000 USD) pays an annual cost percentage of 5.25 percent (over 60 months). In that case, you owe interest at 2716 USD.

Best bank charges you a 10 percent interest rate. Taking out a loan with Best Bank will save you 2,526 USD. View the rates here.

More than interest

More than interest

Although it is advisable to also take your personal situation into account. A lower rate may look good, but the purpose of a regrouping of credits is primarily to alleviate monthly repayments. If you blindly opt for the lowest interest rate, you risk that the monthly repayments hardly decrease. Therefore, also view the repayment term of the lender. This allows you to estimate perfectly whether the proposed formula fits your personal situation.

We do emphasize that the above comparison was made on the basis of posted rates. Best bank can charge you a different rate based on their calculations. That is why it is important to inform you well.