The ability to manage your debts is very important when you take out loans and credits. Sometimes it happens that we can hardly pay another installments, and we have less and less money in the home budget. Is there any way to reduce the installment of the loan or loan?
When you take out loans and credits, we should always remember to carefully read the offers and choose one that will not be a high financial burden for us. It is worth remembering that a loan or loan does not have to be very expensive and does not have to absorb a large part of our income as soon as we choose it appropriately.
On the other hand, we are not able to predict the future – each of us may be in a situation when we lose our job, and with it the source of income, and then we find a job less well paid. Additional maintenance costs may also occur. Therefore, the question arises – can you pay lower installments? Yes, it is possible, but not always and not everywhere.
Renegotiation of loan terms
In many banks and loan companies, we have the opportunity to renegotiate the terms of loans and credits already held. Nevertheless, banks and other companies do not always go hand in hand with customers.
In this case, the reduction in the amount of the installment is associated with the extension of the loan or loan repayment period, which is why we will return a larger sum. Remember that the longer the loan period, the higher the costs.
In addition, the bank or other institution may request additional collateral, for example a mortgage on real estate, surety, which also increases the risk of credit and loans.
For those who would like to pay lower installments for their loans and credits, also consolidation loans were created. Their main task is to collect all costs in a single payment – then the client pays only one installment to the bank granting the consolidation loan instead of many to different banks and companies.
We can take a consolidation loan as either a cash or a mortgage. Mortgage has lower costs, but then we risk real estate. If we do not pay the obligation, then the bank can ask for its own and take away our house or apartment.
These types of loans consist in repaying current liabilities by the crediting bank – then the current debts are already covered, and the client pays the installment to the bank. However, also in this case, the extension of the loan period allowing the reduction of the installment is associated with higher costs.
Look for savings!
When the installments of loans and credits are quite high, in this case we can also look for additional savings in your budget. Then installments will not be so bad during repayment and we will not have to extend the repayment period, and thus the loan and loan will not be more expensive for us.
Withdrawal of the subscription for cable TV, lowering the package on the phone, cutting the expenses related to eating out of the city – these are just some of the proposals that allow us to save up to several hundred zlotys a month.