Collect small loans

Collect small loans

– Lower interest and costs with a consumer loan

Collecting small loans and expensive credits gives you more benefits than just savings. You get a tidy overview of your bills, less expenses and better options with the banks compared to other loans. Consolidating expensive small loans or credit card debt can give you better finances so you can pay off debt faster.

Lower interest by combining small loans

If you have several small loans or credit card debt today, there is no doubt about what you should do. You can save many thousands by collecting expensive small loans. You can obtain information from the Debt Register , where you get a total overview of which expensive small loans you have. Then you add these different credits together and apply for a consumer loan . We obtain offers for you on refinancing . The interest rate is often lower, up to 10% lower than the interest rate on credit cards. You will have fewer bills to deal with, and you can save a good deal on the fees small loans often have.

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Why is it smart to collect small loans?

Collecting small loans can be a good solution if you want a better overview of your debt and want a better interest rate.
It is important to remember that refinancing does not eliminate the debt, but helps you pay it off faster at a lower cost. It may be a good idea to compare offers from different lenders to find the best loan for you. Talk to a financial advisor before deciding to refinance your debt. Is it profitable for you or not?

What is defined as a small loan?

Small loans are also known as consumer loans or unsecured loans. This type of loan often has a higher interest rate than other types of loans, such as mortgages and car loans. This is because the bank has no collateral that can be collected if the loan is not repaid as agreed. Small loans are intended to be repaid over a shorter period. Unfortunately, this can be difficult for many borrowers, and the loan can grow larger than expected.
Then collecting small loans can be a good solution. You get a better overview of your debt and lower interest costs.

Advantages and disadvantages of collecting small loans?

Consolidation of small loans has both advantages and disadvantages.
– Lower interest expenses and fees by combining all your small loans into one larger loan, with a lower interest rate.
– It can give you a better overview of your personal finances, since you get everything gathered in one place.
– Easier for you to keep track of payments and repayments with one loan.
– Paying off debt faster reduces the total cost of your loans.

Another advantage is that you can reassess what you can afford to pay each month. You may want to pay more towards your debt, although this may result in a higher monthly payment.

A disadvantage of collecting small loans is that many people think that they will get rid of old debts by collecting the loans. However, this is not the case, as you are instead replacing the old debt with new debt. The goal of collecting small loans is to get a lower total cost, not to get rid of the debt completely.

What is your borrowing capacity?

When the bank has to assess a customer’s ability to borrow to buy a home, it is the total income and expenses that count. A customer will get a much higher mortgage if the expenses for consumer loans and credit cards are reduced. In addition, it looks better on the tax return to have one consumer loan, than six different small loans and credit cards. This depends on the overall perception the bank gets of you as a customer. Are you a person with a tidy economy, or someone who takes out credits whereever you can? Therefore, it pays to collect expensive small loans.

Here you can also read more about debt refinancing.

It’s that simple

  1. Send us your latest tax return and latest pay slip
  2. Access the debt register and get an overview of all debts. Take a screenshot of this and send it to us. We can then calculate how much can be saved by collecting expensive small loans.

You can collect loans of up to NOK 500,000. If you apply for more than you wish to refinance, the excess amount will be paid directly to you.

Lasse Kollerøs Olsen, Eiendomsfinans Oslo and Julianne Skovli Gåsvær, Eiendomsfinans Lillestrøm

Example refinancing:

Loan example:

NOK 225,000 over 9 years with eff. interest of 14.17%, cost NOK 162,347 Total NOK 387,347. Max. effective interest rate 35.5%.
Repayment period for refinancing: up to 15 years, depending on the repayment period of the loan to be refinanced.

New consumer loan:
Loan example: effective interest 16.7%, 65,000, o/5 years, cost: 28,908, Total: 93,908. Max. effective interest rate 35.5%. The maximum repayment period is 5 years.