The question "how to pay less on a loan" becomes relevant for those who, due to life circumstances, cannot make the required payment on time. And this has a number of consequences.
Financiers and lending institutions have devised ways to use them to reduce the cost of a loan.
Writing by the client to the address of the banking institution where the loan was taken, a request for a deferred payment.
Then, the financial institution may offer the following options:
- credit holidays - this is a temporary stoppage of loan repayment for a specifically agreed time. However, in the long term, the client must pay the loan exactly on the specified date, without debts. It is possible to provide the client with an individual payment plan.
- prolongation - the duration of the loan increases, as a result, the amount of the monthly payment decreases. This option will be optimal if the interest rate is not changed.
- debt cancellation (partial, full) - for the bank to make such a decision, the client must have objective reasons.
If you have several loans from different banks, this option is for you. Since it offers customers the opportunity to combine all loans into a single one and the ability to pay the required amount to only one financial institution every month.
Benefits:
- you do not forget about more than one debt;
-clean credit history.
Today, the most popular among clients is the method of refinancing. Clients are given the opportunity to choose another bank with more favorable conditions in order to repay the existing loan.
When choosing an alternative bank, you should pay attention to:
- rating of a financial institution among other banks;
- a list of documents that will be needed for renewal;
- available additional material spending on commission and insurance;
- optimal conditions for lending.
The refinancing mechanism is that the new bank provides a loan at favorable terms in order to repay the debt on the old loan.
The refinancing program is completely dependent on the needs of the client, someone needs a lower interest rate for convenience, and someone wants to increase the time period for making a monthly payment.
Commissions taken for the purpose of opening and maintaining an account, commissions, the existence of which is not mentioned in the agreement, are considered illegal. Funds for illegal commissions are refundable only to individuals who have a loan in this financial institution.
How to keep the cost of the loan as low as possible?
If you decide to take a loan, take full responsibility for the choice of the bank, and also analyze all possible risks that may impede your timely payment to repay the loan, so that in the future you do not have a headache about how to reduce additional costs on the existing loan … If you are already a client of a certain bank, for example, you are given a salary on the card of this bank, it is best to choose this particular financial institution to receive a loan. Most likely, you will receive favorable lending terms (for example, a reduced interest rate). All this will have a beneficial effect on your financial situation.
If you have a loan taken for a long term, the possibility of using methods to reduce the cost of a loan increases, due to the presence of great competition in the market of banking institutions. This contributes to the fact that banks are constantly looking for more profitable loan programs.
If you have a problem with the timely payment of a loan, you can always use the most profitable option, which will help you reduce the cost of the loan. But still, in order to avoid unnecessary headaches, it is best to make all payments on time.
