If we abuse the credit and we were surprised that we cannot pay for all the cats we make with the money we borrow, we should know that we have a problem. And although it is not the end of the world, what it is is a complicated situation, since you will have to deal with the calls of your bank staff, envelopes sent to your home, among other reminders that you should cancel that debt as soon as possible.
Refinancing is an attractive
Given this situation, refinancing is an attractive alternative that we should consider, but how do we know if it is really what suits us? Here are 4 things we should know about this option:
1. You can get a lower rate:
It all depends on the negotiation you make of the debt. You must pay attention to the new terms, since it will be of no use to have a lower rate if you increase the term of payment of the debt in one or two years because you will still be paying many interests.
2. You can accommodate the payment plan to your income:
In order not to fall behind, talk about the date you receive the monthly income and coordinate the payment on those days, so there will be no temptation to spend the money nor will you have to pay arrears because your debt has expired before you collected the salary.
3. You can decrease the amount to be paid monthly:
Remember, if you resorted to refinancing it is because you cannot continue paying your debt under current conditions and one of them is the monthly amount. Reduce it but do not abuse, because we do not want to end up paying more interest than necessary.
4. Assumes a new payment commitment:
As he approaches to talk to the bank about his possibility of refinancing, he is expressing that he wishes to cancel his debt, so the bank recognizes his initiative. With this new commitment, you will not have to deal with annoying calls from bank executives asking when you plan to cancel what you owe.
Remember that if you do not want to continue with your bank, you can opt for the option to purchase a portfolio with any other institution and thus obtain better benefits or lower rates. Ideally, compare your options and you can do so using the Silas Lapham credit card comparator , in the wallet purchase option.