If you have all kinds of loans with banks (in red, credit card, loan), shops and mail order companies, it can be useful to combine these loans. This gives you more overview of your debts and can save a lot of money. There is only one monthly charge. The bank often gives an attractive discount when refinancing a loan. Old loans in 2013 often charge a high interest rate.
Merge loan example
With a new higher loan (and a cheap interest) the other expensive debts can be repaid in one go. Merging a loan can ensure that you have more spending room at the end of the month.
- loan of 2500 euros (11.6% interest on an annual basis, costs 290 euros)
- 1000 euros in red (15.7% interest, costs 157 euros)
- mail order debt 1500 euros (15% interest, costs 225 euros)
- total interest costs in this example are 672 euros on an annual basis
By merging the loans and taking out a new cheap loan you can save a lot of money. A new revolving credit of 5000 euros with an annual interest rate of 7.5% costs 375 euros per year. By financing your purchases with the revolving credit from now on, you can save almost 300 euros a year in this example. Request a quote to transfer a loan. To be eligible you must have a permanent job (or temporary work phase C) with sufficient spending scope and be between 21 and 68 years old.
Borrow with BKR
Even if you want to combine a loan, there will also be a BKR review. The bank will first check with the Credit Registration Office how large your joint debts are before giving a quote. If the income is sufficient and there is sufficient spending scope, it will not be a problem to merge the loans.
Revolving credit and personal loan
The cheapest loan is a revolving credit where the money that has been repaid can be taken out again. This is not allowed with a personal loan. The differences in interest rates between the banks are large. Usually, loans from large banks are more expensive than loans from smaller lenders. The interest rate of the loan depends on your income, personal situation, spending scope, loan type, monthly repayment and how large the desired credit is.