Suppose you took out a personal payday loan some time ago. Then you consciously chose to borrow a fixed amount at a fixed interest rate. So you know exactly where you stand during the term of your loan. But while your loan stays the same, everything in your personal life may change. Or at your bank. So it’s time to take a critical look at your loan. Because transferring your personal payday loan can save you money.
The best loan for you is the loan that best suits your needs and personal situation. Is the duration or the monthly amount that you have agreed still suitable for your current situation? Maybe you have plans to go back to the school desks. Studying probably means earning less. Then a longer term and therefore a lower monthly amount may be better. In that case it is worth checking the terms and conditions of other lenders.
Transfer personal payday loan
But the main reason why people refinance their loans is to save money. Certainly now that the media suffice with reports about historically low interest rates, people are wondering whether they can also benefit. The interest that lenders offer can easily differ by 2%. A quick calculation: with a loan of € 20,000 the difference between 7.5% and 5.5% interest is € 400 per year. With your loan transfer that is therefore quickly earned.
Before you transfer your personal payday loan, it is good to look at the terms of your current loan. Can you repay for free? Or do you have to pay penalty interest? This is because the transfer of your personal payday loan means that your current loan will be repaid and that you take out a new loan. Some banks charge penalty interest on early repayment, because that means they miss out on an amount of interest. But often the fine easily outweighs the amount that you save by rescheduling your loan.
Do you want more information about transferring your loan? Then contact us without obligation. We are happy to help you make an informed choice.