Banks are constantly competing for clients, so every institute is trying to sweeten those who would get rid of expensive loans with lower interest rates and promotions.If we are aware enough, we can practically swap loans, such as our cable TV subscription or our mobile phone plan, for less and less: in the end, we either pay less for the same or get more for the same amount of money.
It is not a problem to have a loan, if you have more than one loan at a time. Each of these can be settled by paying the full amount of our old debt from the debt settlement debt. The monthly installment of your new loan will be tens of thousands of dollars cheaper due to better terms.
What does a debt settlement loan know about other loans?
If you want to know more about what these better terms mean, just look at the offers listed in the White Rabbit calculator. For example, the cheapest loans can be taken at less than three percent APR for a $ 10 million mortgage loan. This is a very good offer compared to the interest rate spreads of previous years, as about 10 years ago, if you borrowed a forint, you typically did so at only about 10 percent interest.
A closer look at the list also reveals that even occasional fees (such as disbursement fees, prepayments, early repayments) can be saved through periodic promotions. If you look only at the monthly installment change, you can pay tens of thousands less per month.
But not only can we replace our mortgage with a cheaper one. While previously we were able to borrow almost only this type of debt settlement loan and needed real estate collateral, today we can find personal loans recommended for direct debt settlement to settle our smaller loans. The great benefit of debt settlement personal loans is that there is no need for cover but just regular income. It is worth inquiring about this with your preferred loan bank, as this is the type of loan most likely to be used by customers who pay over $ 250. We also need to discourage those who have slipped into repayment. Only forint loans can be redeemed with debt settlement loans and only if we have no backlog.
If we meet the bank’s criteria, we may even receive a new loan in excess of our existing debt. After the old debt has been repaid, the remaining amount can be used freely.
New loan, but old plate
In order to get the loan you need to redeem your loan, we need to go through the entire loan application process again, as it is really about taking out a new loan.
In the case of a debt management mortgage loan, this means that it can take weeks or months to get paid, as the creditor bank examines our creditworthiness. Assesses the value of the property offered as collateral with the help of a valuer, and we must provide the bank with all the necessary documents.
The list may already be familiar to those who have taken out a home loan
- identification documents
- ownership sheet
- employer’s certificate
- a document certified by a notary
and to redeem the loan, we will also need proof of the outstanding capital debt issued by the old lender bank. This includes how much we owe, including interest, incidental fees, handling costs, and other identifying information (ID number, counterparty, date) of the credit transaction.
Luckily, new lending banks credit some of the document costs with various promotions, so you might want to keep an eye on the promotions as we can save you another heavy forint.