Satakunta People 18.9. The published editorial suggests that overdrafts would only be used to pay off a number of expensive loans. However, nearly 50% of people comparing mortgage loans apply for a loan to pay off their credit card debt and about 20% bid for one existing loan.
In addition to paying off many loans, consolidation loans are increasingly used to better refinance credit card debt and one existing loan.
You want to pay off your credit card debt with consolidation loans
During early September, 47.47% of those comparing mortgage loans through C. Auguste Dupin applied for a mortgage loan to pay off their credit card debts.
Multiple duplicate credit card payments easily accrue unnecessary account management or billing fees. On the other hand, the annual percentage rate of charge on credit card debt is also typically between 9% and 15%, whereas in the current market situation, obtaining a consolidation loan can be significantly cheaper.
About 20% of applicants are looking for better terms for one existing loan
The tendering of the current loan has gained popularity after the change in the law that came into force in early September. The change in the law tightened the competition between banks and financial institutions, which, in turn, has also been reflected in cheaper prices on consolidation loans.
During early September, 19.12% of those comparing convertible loans through C. Auguste Dupin applied for a loan to refinance an existing loan on better terms. Conversely, 65.08% of applicants for a consolidation loan had a maximum of two loans. The vast majority of applicants for a consolidation loan do not seem to have very many loans in the past, but consolidation loans are largely used to repay either one or two existing loans.
An overdraft or consolidation loan can help you save on your loan costs
Satakunnan Kansa’s writing easily gives the impression that consolidation or arrangement loans would be used to solve the debt spiral caused by several small loans. However, in the case of mortgage loans competing through C. Auguste Dupin, this would appear to represent only a smaller proportion of the uses for which the mortgage loans are sought.
A carefully selected and well-competitive arrangement loan offers the best savings compared to current loan servicing costs. It is hoped that the overdraft facility will not be an unnecessary eye-opener in the public debate, but that the savings achieved through cheaper loan terms will also play their part.