In the end, this question is roughly mentioned in the first paragraph. Currently we are in a so – called low – interest phase. The interest rate is very low and the loan conditions for financing in Austria are correspondingly lucrative. However, it is quite possible that you have taken out a loan in a high-yielding phase, as was clearly the case six years ago. You feel the economic downturn, you feel the inflation, but your credit does not adjust to these circumstances. They pay for a much too expensive product, which currently has much cheaper. And it is precisely at this point that the appropriate step in a credit transfer makes sense. When rates exceed your head, it’s high time to think about the debt. http://jejcrew.com has more notes
What do you have to pay attention to?
First, let us explain the difference between the effective and the nominal interest rates.
There are already many misunderstandings that can lead to a change taking place, although in the end it costs more money. Banks like to show the nominal interest rate. This is relatively easy to explain. This only applies to the interest that is applied to the loan amount. Here are some additional costs added, which are also interest in the loan. And this interest rate is taken from the APR. This will tell you if you really should replace your old credit with a new one.
What are the pitfalls of debt restructuring?
Now that you have decided that your credit is too expensive, you should certainly study one or the other offer in the market. Credit calculators can help you calculate the cost of new loans and whether you can really save money in the end. However, these computers do not give you information about contractual subtleties. Please read your current contract carefully. For example, if a penalty is mentioned, then you should reconsider the project again. This is a contractual penalty if terminated early. This penalty can be substantial, usually between one and five percent.
How does the transfer to another loan work?
As with any contract, you must meet certain deadlines. The extent to which these shapes vary greatly from bank to bank. In some cases, it is only three months before expiry of the fixed interest period, it is possible to dissolve the contractual relationship. If you do not comply with these deadlines, you have to expect hard consequences. Once again, the tip is dismissed that you should study your contract carefully, possibly with the help of a specialist. As so often with loans, we recommend a comparison of the banks or providers. Do not only consider your house bank or branch banks, but also inform yourself about offers from direct banks. Often you get better conditions, but at the cost of service and personal attention. In addition, you should not specifically address rescheduling offers. Often, these offers hide unpleasant high fees.
In a nutshell:
- Note current interest rates
- take a close look at the current contract
- Meet deadlines
- Compare banks and offers