Almost everyone needs a loan at a good time.
It can be a mini loan of less than 1000 USD, simply because something breaks down. The loan is often repaid within a few weeks. But if you want a personal loan of several thousand USD, for example for a car, new bathroom or study, the term is often 3 to 5 years. The largest loan that people will take out in their life is usually the home loan. Because this often concerns very high amounts, the repayment can be up to 30 years.
In this article we assume a personal loan, so for that car, bathroom or study. Responsible borrowing is very important because you pay interest on your personal loan. The loan amount must therefore not be more than what you really need. So you ensure that you can just live, with enough space for some nice things. Now imagine that you bought a car 3 years ago and have taken out a loan of 6,000 USD for it. At the time, you opted for a fixed interest rate, so that you would not be faced with unpleasant surprises.
Cheaper credit provider
Fast forward to 2017. We could have thought then that the interest rate in 2017 would fall to its lowest point in history? Not you, because then you would definitely have opted for a variable interest rate. But did you know that you can transfer your loan to a cheaper credit provider? If you still have installments to pay for a few years, this can be a good idea and save you a lot of money. To see who offers the lowest interest rate on personal loans, you can compare the providers online. If you have little time, you can already see the cheapest loans here.
In particular, look at the APR column: these are the costs that you pay on top of the loan amount each year – the sun rises for nothing and the lender must also eat. You can request free quotes – as many and often as you want – by using a kind of calculator: the loan simulator. He calculates your monthly repayment in 3 steps. All you have to do is enter the loan amount, the term and any fine (this is stated in your loan contract and can be a maximum of 1%) for early repayment.
After you have placed the various quotes next to each other, check with whom you save the most money. The provider will pay off your old loan and put this amount in a new credit jacket at a lower interest rate. You can easily save a considerable amount on your monthly payment. One last tip: if you have various personal loans, it is much cheaper to bring them all under the new personal loan at the lowest interest rate. It saves a lot of money (you pay separate borrowing costs for each loan). Say for yourself, you can find a better destination for those saved USD.