A consolidation loan in Norway is a good solution for those caught in a debt spiral. First of all, because this way you regain control of your financial obligations by turning several instalments into one that you will always remember. You’ll often find that by combining the interest, the total cost of repaying your loans will be lower. How does it work?
This solution is often called debt refinancing. Basically, it means combining all your loans into one. Thanks to this, you will no longer have to remember to make several payments, but only one that you have to pay once a month.
There is also another benefit associated with debt consolidation, as the amount of the new payment will be less than the sum of all your previous payments. This is because you will get one interest rate on the new loan, and as a result – the total interest amount will be lower than before. From this point of view, refinancing is not only a convenience, but above all a financial benefit.
What is interesting is that credit consolidation can be useful not only for you who have several loans and are having difficulties paying them off. It can also be a good solution in the case of just one commitment that you made many years ago.
You need to remember that the banking market is changing dynamically, and an offer you took advantage of a few years ago may no longer be profitable. In this case, a consolidation loan will mean transferring your debt to another bank that can offer better repayment terms. It is therefore worth contacting a credit counsellor who will check the current situation in the financial market and perhaps they will find a better offer for you.
Credit consolidation is not only an opportunity to obtain more attractive repayment terms. After a few years, your creditworthiness will have improved, which means that you will be able to get additional funds that you can use, for example, to renovate your flat. The bank with which you want to refinance will recalculate your creditworthiness, offering not only new loan terms but also the possibility of obtaining additional financing.