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Replace installment loan – It can be worthwhile

Summary

If you want to replace an installment loan, you should consider a few things. Above all, check whether the existing loan agreement includes fees in the event of early termination. If you do it cleverly, you can save a lot […]

If you want to replace an installment loan, you should consider a few things. Above all, check whether the existing loan agreement includes fees in the event of early termination. If you do it cleverly, you can save a lot of money with this kind of rescheduling.

Check credit terms

You can finance major purchases that you cannot or do not want to pay for in one fell swoop with an installment loan. The principle: You get the desired loan amount from the bank. You then pay back this sum plus the accruing interest in constant monthly installments. For private loans, terms of between twelve and 72 months are common.

If you find that your interest rate is well above the current interest rates, it can make sense to replace your installment loan. This process is based on the principle of rescheduling to reduce the monthly interest burden. (Installment Loan – How To Spot Traps When Borrowing Money)

Replace the installment loan: switch to the new bank

Even small reductions in the interest rate can bring substantial savings on balance. This is especially true for high loan amounts and long terms. When you redeem an installment loan, you almost always save money. An important tip: Before you take action, you should read every clause of the current loan carefully. In most cases, fees are stipulated in the event of early redemption. If these are too high, they can destroy the desired savings effect. (How to cancel an installment loan)

Tip: Switching to another bank can be worthwhile. In the event that your bank is not ready to provide you with a new loan, you can view the offers from other banks. Let us give you comprehensive advice and answer all open questions regarding loan terms and special repayments. By taking out a loan from another bank, you can replace the old installment loan and pay a cheaper interest rate than before. (What to watch out for in the case of special repayments)