Loans and Debt
We can help you with your debt. Whether you want to refinance to consolidate loans,
get better terms, or clear up payment defaults.
Below you’ll find answers to many common questions about loans and debt.
This is how we help you:
Fill in the application form
It only takes a few minutes and is completely
free and non-binding for you.
We talk to the banks
Your advisor will talk to our partners and find the
best solution for you.
Receive a non-binding offer
Once we've landed the solution we
most believe in, we'll contact you for a
no-obligation quote.
Unsecured loan with debt
Personal loans and credit cards, also known as unsecured loans, are a type of loan in which the borrower does not need to provide any form of asset or valuable item as collateral in order to have the loan approved.
- No collateral: As mentioned, the borrower does not need to provide any assets as collateral for the loan. This reduces the risk to the borrower of losing valuable assets.
- Higher interest rates: Since the bank takes on greater risk by offering unsecured loans, the interest rates on such loans are often higher than those on secured loans (such as mortgages).
- Credit Assessment: Unsecured loans often depend on the borrower’s credit assessment and financial history. Lenders will evaluate your ability to repay the loan based on your income, past borrowing history, and credit score.
- Smaller loans: Unsecured loans typically have an upper limit on how much you can borrow. This limit is lower than what you might be able to borrow with collateral. The amount you can borrow will also depend on your financial situation and creditworthiness.
- Faster approval: Because there is no need to appraise assets, unsecured loans typically take less time to approve. They are also disbursed more quickly than secured loans, such as mortgages and auto loans.
- Uses: Unsecured loans can be used for a variety of purposes, including paying for unexpected expenses, consolidating debt, financing travel, or for other personal needs.
Mortgages with Debt
A mortgage, or simply “home loan,” is a type of loan that people typically take out to buy or refinance a home. Let’s explain some of the key terms related to mortgages:
- Mortgage: This is the loan you take out to purchase a home. The loan allows you to borrow a significant amount of money, which you then repay over time, usually in monthly installments. A mortgage can have a fixed or variable interest rate.
- Debt: This is the total amount you owe the bank. This amount includes both the original loan amount and any interest you owe on the loan.
- Interest: This is the cost of borrowing money. Interest is calculated as a percentage of the outstanding balance and is added to your monthly payment.
- Loan term: This is the period of time during which you have agreed to repay the loan in full. Common loan terms vary, but 20, 25, and 30 years are typical options.
- Monthly payments: This is the amount you pay each month to pay off your mortgage. Each payment consists of both the principal and interest.
- Loan Agreement: This is the contract you enter into with the bank that outlines the terms of the loan, including the interest rate, the loan term, any fees, and the repayment terms.
- Collateral: The home you purchase with the mortgage serves as collateral for the loan. This means that if you are unable to repay the loan as agreed, the bank can demand that the property be sold to cover the outstanding loan balance. This is called forced sale.
Unsecured Loans
It is important to note that, as a borrower, you have a legal obligation to repay unsecured loans. If you default on the loan, it may result in financial consequences, including a negative impact on your credit score and possible debt collection.
That is why it is important to carefully consider the loan terms, the interest rate, and your own ability to repay the loan before taking out an unsecured loan.
Terms and Conditions for Loans with Existing Debt
- Total debt should not exceed five times total annual gross income.
- Loans may be granted for up to 90% of the home’s value
How much debt do you have?
Totalbeløp
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Effektiv rente
This is how we help you:
Fill in the application form
It only takes a few minutes and is completely
free and non-binding for you.
We talk to the banks
Your advisor will talk to our partners and find the
best solution for you.
Receive a non-binding offer
Once we've landed the solution we
most believe in, we'll contact you for a
no-obligation quote.
We can help you with your debt
Through our partnerships with several banks and credit institutions,
we have extensive knowledge of the solutions and products available.
Together we review your financial situation, obtain an overview
of payment reminders and find an optimal solution for you.
- Børge Finsæther, Eiendomsfinans Harstad
Free and fast case management
With us, you will be assigned a dedicated advisor who will help you every step of the way. After
a pleasant conversation with you, we map out your financial situation.
FAQ - Frequently Asked Questions About Loans and Debt
What is the difference between secured debt and unsecured debt?
Secured debt consists of loans secured by an asset, such as a mortgage where the property serves as collateral. Unsecured debt consists of loans that are not secured by a specific asset, such as credit card debt and personal loans.
What is the interest rate on my loan, and how is it calculated?
The interest rate on your loan depends on several factors, such as the type of loan, your credit history, whether you have collateral for the loan, and general market conditions. The interest rate can be fixed or variable, and it is calculated as a percentage of the outstanding loan amount.
How can I consolidate my debt so I can manage it better?
Refinancing, or consolidating debt into a single loan, involves taking out a new loan to pay off existing debt, usually to secure lower interest rates or to create a more manageable repayment plan. This can help simplify your finances and reduce your monthly expenses.
What is the difference between minimum payments and extra payments on debt?
Minimum payments are the smallest amounts you must pay each month to avoid defaulting on your debt. Extra payments are voluntary payments made in addition to the minimum payments, which can help you pay off your debt faster and save money on interest.
How does debt affect my credit history and credit score?
Debt can have a significant impact on your credit history and the credit score you build. Paying off debt on time and keeping your credit card debt low can improve your credit score, while missed payments and a high debt-to-income ratio can lower it.