If you have ended up in a situation where you are having one or more expensive loans with very high interest rates, you may want to pool all the loans into one larger loan. High-interest loans with high interest rates can quickly become expensive and can lead to several payment remarks if you are unable to pay. By consolidating loans into one consumer loan, you will get a tidy customer relationship and probably a much lower interest rate and fewer fees than if you continue to let interest rates run, for example, on your credit card debt.
Consumption debt refinancing
Loan refinancing may sound complicated, but fortunately it is not. Refinancing simply means replacing your existing debt with a new loan. The new loan should have better terms than you had on your existing debt, so you get lower interest expenses while getting a more tidy economy by pooling multiple small loans into one loan. If you convert your loans into a consumer loan with Penlet, you get a predictable repayment schedule of up to 15 years, and a rate that is significantly lower than the one you have on your credit card debt today. The monthly installments you pay cover both installments, fees and interest, and you have the option of requesting up to three payment-free months during the year, which is convenient for, for example, December and July. All types of loans and credit can basically be refinanced,
Requirements for refinancing
The general requirements for applying for refinancing at Penlet are the same as when applying for an ordinary consumer loan with us: you must be over 23 years of age, a Norwegian citizen and have three years’ tax history. You also can’t have payment notes. When you apply for refinancing, you enter information on the loan amount, account number and repayment period on your existing loans, before the application for refinancing is signed.
After the application has been submitted, a credit check will be carried out. It is this that determines whether you will be granted the loan amount for refinancing. The processing time for refinancing is the same as applying for a consumer loan and in most cases you will receive a response within a few hours on business days.
At Penlet you can refinance loans up to 500,000, and it is Penlet that ensures that creditors get paid when the loan is granted. If you have payment notes or your small loans or credit card debt are about to be collected, you will not have your refinancing application approved.
Avoid credit card debt
Using the credit in your credit card as a loan, if you do not repay almost immediately, never pays off. The interest you receive on your credit card debt if you do not repay the amount you used within the deadline is very high. Therefore, if you are unsure whether you will be able to repay the extra money you need to borrow, you should consider taking out a consumer loan, which gives you both a lower interest rate and a longer-term repayment plan.
The road to a cleaner economy
Not taking out several unsecured loans at one time, whether different loans or through one or more credit cards, is not recommended. You get many customer relationships with different lenders and it is more difficult to keep track of how much you owe in total. You may also be more easily tempted to spend more money than you can repay when you borrow from several different lenders. Interest rates on small loans and credit card debt are often very high, and if you end up in a situation where you are struggling to repay the debt on time, you run the risk of getting more debt collection and payment notes. therefore, is to always think through what you need money for and not to act on impulse when applying for a loan, no matter what kind of loan you end up applying for.