Consolidation credit is a good option for anyone who has fallen into a debt spiral. First of all, because in this way you will regain control of your financial obligations by changing several installments to one that you will always remember. It often turns out that as a result of the combination of interest, the total cost of repaying the loans will be lower. How does it work?
This solution is sometimes referred to as debt refinancing. In general, it involves combining all your credits into one. Thanks to this, you do not have to remember a few installments, but only one, which will be repaid every month.
There is another benefit to debt consolidation, as the amount of this one instalment will be lower than the sum of all existing ones. This is because you will receive one interest rate on one loan and as a result, the total interest rate will be lower than before. From this point of view, refinancing is not only convenience and, above all, financial benefits.
Interestingly, credit consolidation can be useful not only when you have taken out multiple loans and are having trouble repaying them. This may also be a good solution for only one commitment you made many years ago.
You need to remember that the banking market is changing rapidly and the offer you took advantage of a few years ago no longer needs to be beneficial. In this case, a consolidation loan will mean transferring the debt to another bank, which may offer better repayment terms. Therefore, it is worth contacting your credit advisor, who will re-check the current situation of the credit market and if it finds a more favorable offer, it will help you get credit already under new conditions.
Loan consolidation is not only an opportunity to obtain more attractive debt repayment terms. After a few years, you may have better creditworthiness, and thus you will have the opportunity to raise additional funds, which you will use for example. for the renovation of the apartment. The bank where you will want to obtain refinancing will recalculated your creditworthiness by proposing not only new lending rules, but also the possibility of obtaining additional financing.
It is possible to obtain a consolidation loan in Norway, but you must meet several conditions. First of all, you must be more than 20 years old and also have a Norwegian residential address. An additional obligation is to have a permanent personal number, as well as obtain a fixed income.
If you are thinking about consolidating your loan, feel free to contact us. Lorentzen Consulting is a company that has extensive experience in the financial market. We have already helped hundreds of people transfer their credit to another bank. We will also help you.