Many Danes have loans and debts to several creditors. This means unnecessary expenses for foundation, administration, payment service etc. and high interest rates!
Window Envelope # 4 has just landed in the mailbox and the feeling of frustration over payments and of having lost sight of the debt is clearly felt… sigh… now again… If you recognize the above feeling, you are far from alone.
Learn how to defeat the blatant debt
It is not at all unusual to have debt in several places. In fact, many have an average bank debt of approx. USD 50,000 in addition to mortgages etc. Many, however, have additional debt with other mortgage lenders, which means that there is not just one fixed place to pay for, but more.
Here, problems often arise because it means that you have to keep track of payments to several places, and it also means that less payment costs occur in the individual places, such as payment service fees and the like.
The worst thing, however, is that the individual loans will of course pay interest. Typically, several small loans with very variable, often high, interest rates. It sucks your money out of the cash box – money that could otherwise be spent on fun stuff.
Let’s take an example of payment to multiple creditors
It is not unusual to have debt in 3-4 different locations, and if the many amounts are followed by a larger than reasonable interest rate, it doesn’t just mean you have to keep track of payments and installments, you pay more at the same time than what is “fair”.
“It gives a total loan with an average interest rate of just over 18%, ie USD 9,000!”
Let’s take a thought example and assume you owe $ 50,000.
This gives a total loan with an average interest rate of just over 18%, ie USD 9,000! In addition, there are foundation costs from each individual loan and fees for administration and installments. In other words, there is nothing to say that the bills always come and clear the account – and besides the money claims stress and annoyance over large and incalculable debt.
You should therefore definitely use a collateral loan to redeem the many expensive, small loans.
Collect your loans
“Eg. offers Good Finance collateral loan with an interest rate of just 4.99% ”
A collateral loan gives you room and air in your finances. Collecting loans is easy and it will save you a lot of money and unnecessary costs from various debt lines.
Eg. offers Good Finance collectible loans with an interest rate of just 4.99%. If the loans from the example had such interest, you would only have to pay USD 2,495 in interest versus the USD 9,000 from the tax debt. So you had saved a whole 6.505 dollars! There is a clear noticeable difference in the amount available, so you only have to pay the bill one place each month.
Here at Good Credit, we recommend that you take out a cheaper collateral loan if you have several smaller or larger outstanding loans to creditors – ie businesses and institutes that you owe money to.
You can find the cheapest place to borrow money, using our smart consumer loan overview, where you can customize your search to your needs in terms of amount and repayment period.