Smaller monthly payments and easier financial planning are just some of the benefits of combining credits in one payment. To increase your ability to combine credits, fill out a questionnaire in several companies. It won’t cost anything, but increases the chances of getting a better deal. If the offer is unsatisfactory, there is no need for further cooperation. An alternative solution is a car loan. Assess your financial opportunities. Borrow responsibly.
Do I have a credit combination?
Most often, the refinancing of loans is necessary because the cooperation with lenders so far is not satisfactory. Main reasons:
- unfavorable loan repayment terms with other lenders;
- the situation has changed and the lender wants to raise interest;
- you have taken several loans, but you can only pay interest or fee for the extension;
- want to take credit holidays, the lender supports it, but at the same time wants to raise interest rates;
- want to pay only one, not many, bills for your loans;
- Credit holidays will be needed in the future, but the current creditor does not offer this option.
Any Latvian citizen who has taken several loans can apply for credit unification. As part of the transaction, the lender will sign a contract with you, pay the old debts and you will pay one new invoice to the new creditor in the future. Where a mortgage refinancing procedure is more complex and requires a tripartite agreement. If you want to pay your old debts yourself and pay your bills, look at what a consumer loan offers with a repayment term of up to 2 years.
What are the costs of merging?
Choosing a longer loan repayment period will reduce the amount of credit payments, but the total amount that you will pay over time to raise finance for the lender will increase. This can be beneficial if you are currently in decline, because under Latvian law you have the right to repay the debt ahead of time – without additional commission. The only costs that a creditor may have in this case are the current month. If any claims are made regarding the application of this paragraph, it is worth contacting the Consumer Rights and Protection Center as this authority protects the consumer rights against non-bank lenders.
The combination of non-mortgage and non-mortgage loans is costly. When concluding a contract for re-crediting, the company will charge a commission for the execution of the contract. The size of the commission is determined individually for each client and depends on the amount, maturity, customer’s credit history, other liabilities and, if any, previous cooperation with the lender. It should be assumed that the commission can reach several hundred euros. It is possible to pay this amount immediately or it is included in the terms of the new contract and paid back gradually.
How to combine loans?
In order for the transaction to be successful, it is important to carefully assess how much you are currently paying for the loan repayment. When this is done, it is necessary to fill in the application forms (see table), which should include contact details, income and liabilities details. The future process will largely depend on the creditor’s response and the bid received. Before signing a contract, read it carefully and discuss all the uncertainties. Latvian law provides that you can offer changes to the terms of the contract. If you are a valuable customer, the lender will be interested in making the change. If the offer, however, is unsatisfactory, it is worth looking for other solutions. Borrow responsibly.