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5 Benefits to Refinansiering or Refinancing Right Now

Think back to your days in school. What’s the first thing that comes to mind? It is playing on the swing set? Is it your middle school bully? Is it the feeling of stepping onto the floor of your first real dance?

For many, images of school bring one thing to mind: the dread of a long written assignment. Each new assignment brought the promise of a chance to turn over a new leaf. It was possible to spread the assignment out over the given weeks so that it wouldn’t be much work on any given day.

But that hardly ever happened. More often than not, you probably waited until the night before and then did your very best to cram everything in as fast as possible. The research took you a few minutes instead of days. You even scribbled down a few sources that you didn’t bother to look at.

Then it was time to write. You spent valuable time fiddling with the margins, trying to make your work appear longer than it really was.

When it came time to finally write the darn thing, well, it was nearly impossible to concentrate. There was something good on TV. Your friends were all hanging out together somewhere and having fun. Your dog was looking at you imploringly, hoping you would play a good game of fetch.

But ultimately, you did it. You stayed up late and wrote your little heart out and ended up with a pretty decent paper at the end of it all.

Now, those days are behind you.

But the memory lives on. 

For many, the idea of really sitting down and facing their money matters head-on can be just as intimidating as writing a paper. So perhaps you put it off month after month. Maybe you have the feeling that there is a better solution to your current financial situation than the one you’ve come up with, but the memory of being stuck in a chair and miserable while your friends played haunts you.

Maybe all you need is a little push to get yourself started. It won’t be as complicated as you think.

In this article, we’re going to provide that push by offering you five benefits you may not have thought about when it comes to refinancing.  Click the link: https://www.refinansiere.net/ for more information.

Part of what you’re dreading is the time you’re going to feel like you’re wasting going over numbers that you’ve already gone through and decided were the best for your financial situation.

The first benefit to refinancing is that you are going to save time each and every month. You may be asking yourself, “How is that possible?”

If you take out a single loan in order to pay off all of your outstanding debts, you will replace the three to five payments you currently make with one single payment. 

If that doesn’t sound like much, it’s time to take into account how much invisible labor you really do. Invisible labor is a term sociologists use for any labor that is unpaid, and you probably do more of it than you think.

Planning what to have for dinner? That falls under the category of invisible labor. Laundry? Yep, that too. Making doctor’s appointments? We’re still talking about invisible labor. Click here for more information on the subject. 

When you think about it, you’re probably spending quite a bit of time on your payments. Not only are you taking the time to pay them, but you’re also using brain power when you’re not paying them. Think about the feeling you have when the first of the month comes around and you know you have a payment due, but you’re just not ready to think about it yet. Well, you’re using up brain resources even when you’re not doing the thing you need to do.

Whew! Sounds exhausting. 

Many loans not only charge interest (more on that in a minute), but they also have associated fees. This means that you’re paying the bank for the privilege of paying them money. 

If you’re only paying down one loan, then you’re only paying to pay the loan one time. Does that make sense?

In other words, by refinancing you’ll be saving a lot of incidental money that would normally just be going to the bank. It could be used to repay your loan faster if you so choose. 

If you currently have multiple lines of credit, chances are good that they all have different interest rates. Perhaps you’ve been paying some of them so long that you don’t really remember what each individual interest rate is.

If you’re like many people, you reassure yourself that you got the best possible rate at the time you applied. While that is almost certainly true, nothing stays the same forever.

If you refinance your loan, you will be left with one single interest rate. You’ll know exactly what you’re paying and how much of your final payments will be paying off the loan and how much will be from the interest. This makes it much easier to compare and analyze than five separate rates.

This one is a big one.

Let’s look at some of the average rates for different kinds of loans.

First, let’s take a look at credit card rates. Many people have outstanding debt on their credit cards. The interest rate on a credit card can be as high as thirty percent. Remember that that means that for every hundred kroner you borrow, you can expect to pay thirty more kroner in interest. 

Another reminder: that interest continues to accrue each and every month. While thirty kroner doesn’t sound like much, it will go up the next month. Let’s take our example one step further.

Let’s say that you are unable to pay your credit card bill for a month, but you don’t charge anything else onto it. Even without adding any additional credit, the next month your interest will add thirty-nine kroner to your total. Now, instead of owing one hundred kroner, you owe one hundred and sixty-nine kroner. 

That is, of course, assuming that there are no financial penalties associated with skipping a payment (which is highly unlikely).

You can see how quickly this starts to add up.

Now let’s compare that with the average interest rate on a consumer loan.

The lowest possible interest rate is five percent. That’s right, only five percent.

Let’s take a look at our same one hundred kroner debt after it’s been refinanced.

Your one hundred kroner debt in this example would only acquire five additional kroner in interest in a month. If you skipped a month as you did in the first example, your interest would still increase. But this time, you would only see 5.25 kroner added to your total debt.

This means that the total of your small consumer loan debt for two months would be 10.25 kroner. Compare that with the sixty-nine kroner from our first example. That’s quite a difference!

As you can see, you may be able to pay off your loans much quicker if you take the time to refinance. Click the link for more information about current credit rates.

Finally, we come to our last benefit.

As you may or may not know, banks take into account a number of variables when it comes to determining the rates of your loan. The higher the risk you present to them, the more you will have to pay in interest and fees.

If you took out a loan several years ago, the specifications were suited to you then.

Your circumstances may have changed in a way that looks attractive to banks.

For example, you may have an established history of paying your bills on time that you didn’t a few years ago. You may have purchased a home that you can use as security on your loan. That would bring your interest rate down considerably. 

As you can see, there are many benefits to analyzing your credit. You may find that you are eligible to save hundreds of kroner a month. It is possible that you could save thousands over the lifetime of your credit line.

Hopefully, this has inspired you to get out there and give it a try!

Posted by

Joseph Williams

Education