If you have several smaller loans that cost a lot of money each month, a good alternative is to try to pool these loans into a larger loan. Expensive loans are something that there are many on the market. Some things you might not think of as a loan but that is what it is in reality, a good example of this is the purchase of something on installment. This is actually nothing more than a very ordinary loan, although it is often not described as one.
Then we all have smaller private loans also where the interest rate can be very high if you do not look up. It is if you have a loan of this kind that it is smart to take a larger loan to cover the other loans.
If you make a quick calculation example of the whole thing then a borrower assumes that you have USD 100,000 in loans that will be repaid in five years. If the average interest rate is 20%, which is not at all unreasonable if there are many smaller loans, the cost per month for an annuity loan is USD 2,650. With an interest rate of 8% instead which a mortgage loan could have, this cost becomes USD 2,030 per month. USD 620 less per month in costs, which is quite a lot.
Money only for old loans
The whole idea of a mortgage loan is to bring down the costs every month. If there are many expensive loans, it is possible to cut costs by several thousand USD each month. So even if it is the question of a loan, the idea is that you will save money.
If you have, for example, USD 100,000 in small debts, you should not borrow more than just this amount. Resist the temptation to take out a larger loan, even if this goes, as this contradicts the idea of saving on monthly costs.
What type of loan applies?
When it comes to a mortgage loan, it is usually a private loan. These are ordinary unsecured loans where it is possible to borrow up to approximately USD 350,000 if the credit check is passed. The interest rate usually differs significantly depending on how large a loan has been taken, which means that even if it is a private loan that you already have, another major can be much cheaper.
Your other alternative is a mortgage loan, but this only works under certain conditions. You must already own a home that is not fully mortgaged. Then it is possible to increase the mortgage loan up to a mortgage of a maximum of 85% and that is the amount you get there that you can use to solve other expensive loans. In order for this opportunity to exist, there are certain specific requirements that do not fit many. Then, of course, a credit check must also be passed in order to increase the loan. If this is an option for you then it is probably also the best way as the interest rate for a mortgage loan is usually lower.
How to collect your loans?
If you have the option of a mortgage then it is to contact your lender that you already have that applies. Only these can help in this case.
Otherwise it is to contact a lender who deals with private loans and then there are many options to choose from. For example, all major banks offer this type of loan plus there are several other lenders that are also possible. Another alternative is to apply for a loan broker, since you only need to apply for a loan at the same time and get answers from most lenders.
Otherwise, it is actually quite easy to borrow the money and pay back the old loans. You are very likely to get help with this from the lender with whom you take out the new loan.