Consolidated loan term selection – Get to choose the right loan period
Maturity is a term that covers the period of time when a consolidated loan can be repaid. The maturity is determined by you together with your consolidated loan provider. There is a difference in how long it can be and it depends on a lot of the consolidated loan type and your needs.
Whether you need the money for 30 days, 12 months or up to 15 years. This is the spectrum you find on the online market. Get advice on choosing the right maturity in this article.
For the so-called consolidated loans, the maturity is very short in 1-45 days. On the other hand, the maturity of, for example, a home consolidated loan is much longer, typically from 15-30 years. During the period when you gradually repay your consolidated loan, you pay interest on the size of the consolidated loan.
How to choose the right maturity
The maturity depends on the size of the amount. There is a big difference between applying for 10,000 or 25,000 kroner. Obviously, the larger the consolidated loan, the harder it is to repay in a short time. There are both pros and cons of having a long or short maturity. That’s why it’s about choosing the right solution that best suits your situation.
For the longer you have the money, the more expensive it will be for you overall.
1. You must be able to pay the service.
First and foremost, it is important that you can repay the benefit within your fixed term. Though it may seem tempting to choose a short period to repay the money, then you ly have the consolidated loan out of the world again. But it is important that you pay back within the agreed deadlines.
If you do not pay the monthly benefits back in time, you may risk getting more expensive reminders or, in the worst case, be registered in the RKI .
2. No longer than you need.
At the same time, it is important that you do not borrow for longer than you really need. If you have the opportunity to repay within a certain period, do so and do not have a longer term than necessary. There are costs associated with the repayment and it is cheaper for you to get paid back as soon as possible.
So it’s about finding the balance between the length of your maturity, which gives a monthly benefit you can pay, but which is not too long.