Unfortunately, contrary to European trends, the Hungarian population misses a huge opportunity when it comes to credit. While it is becoming more commonplace for us in the West to know that banks are coming up with better deals every few years, they are replacing their existing loans with a cheaper one every few years, while in Hungary we rarely use this very good tool.
Of course, the real challenge is to find the best loan repayment loan to put your finances back on track. Here are some tips to help you make the best decision for you!
Helping you choose – What new credit do you need?
In order to get the best loan replacement loan for your purpose, it is worth clarifying what we want to swap. It is easier to prevent a “runaway” credit card debt, such as an expensive mortgage loan. Fortunately, almost all types of loans can be replaced with a debt settlement loan.
Mortgage Loans: Years ago, it wasn’t hard to beat an offer that resulted in more than 10 percent APR. Larger loans can be canceled for decades, and in the meantime, much cheaper options appear on the market, as we are experiencing now. Those who have been paying off their home mortgages for a long time can now find an offer around 3-5 percent APR. So it is worth replacing as we can reduce our spending by more than 5 percent with a mortgage loan. However, banks’ mortgages can also be redeemed with mortgages. This means that you will have to go through the same credit rating and valuation procedure as when you take out an existing loan, ie you will need a property that we can offer as collateral.
Personal loan: Just like a mortgage loan, you can swap a smaller personal loan for a cheaper one with a loan replacement loan. The recipe is the same: around 2013-15, the average 25 percent APR loan was not uncommon, and today these loans can be below 10 percent. So it is worth switching to a debt settlement personal loan and paying the cheaper one further.
Quick loans, credit card debt, etc
You can also swap consumer loans for a better interest rate loan. Smaller loans typically have higher interest rates due to their availability and flexibility. For example, with a credit card, it is not uncommon for interest rates of 38-40% if we do not repay the debt on time.
While the amount of money deducted for the delay may seem tiny, the amount of money thrown away can make up a significant amount from month to month. If we are unable to settle these types of loans, you may want to apply for a mortgage loan, as you can reduce your 38 percent interest rate to below 10.
Loans without papers? You’ll have to go in with these documents
It is worth pointing out at the outset: borrowing a loan is just as much a process as we have experienced when borrowing. That is, for a loan replacement loan, you will need a valid photo ID and a proof of income of less than thirty days to determine if your payment is high enough.