My WordPress Blog Wed, 27 Feb 2019 11:49:55 +0000 en-US hourly 1 Consolidated loan term selection – Get to choose the right loan period Wed, 27 Feb 2019 11:49:55 +0000



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.

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The Truth About Life Insurance On Consolidated Loans Wed, 27 Feb 2019 10:05:35 +0000


Why do banks require a mortgage-approved client to make a life insurance?

Surely you think you know?

Do you think the question is strange or – let’s just say it – dumb?

Life insurance was needed in order for the insurer to repay the consolidated loan amount in case the person unexpectedly catches the passenger train without a return ticket.

In other words – if the person who drew the credit is dead, the bank takes the money from the insurer.

It is logical to think that the purpose of life insurance is really to repay your credit if you are no longer there.

It is logical, but not always true!

That is why we argue that the main purpose of the borrower’s life insurance required by banks is NOT to guarantee the bank’s money in case of death of the client:

  1. Not all banks require mandatory life insurance of the borrower!

Consider that property insurance is absolutely and unconditionally mandatory – always with all banks. But not life insurance. Yes, the life insurance can bring you some bonuses on the consolidated loan / a bit lower interest, say, but the lack of one will not frustrate your credit. At least in some banks.

Does it have “smart” banks that require life insurance and “stupid” banks who have not thought of defending themselves and do not require such insurance?

  1. Some banks will offer you to make life insurance for 5 years … regardless of the term of your consolidated loan!

This means that even if you have taken a consolidated loan for a 30-year period, the bank agrees that life insurance will be for a period of 5 years. And when the 5 years expire, you have no commitment to renew your insurance. Yes, you can check it out! You are under no obligation to renew your insurance.

Do some banks expect that there is a risk of being mentioned only during the first 5 years of the consolidated loan?

Or do borrowers develop special “immunity” after 5 years of mortgage payments?

And maybe some banks just do not care if something happens to you … Maybe they do not care if there’s anyone to get their money back if you go to that vacation?

  1. Some banks will offer you to make a life insurance savings instead of standard risk insurance!

Savings insurance deserve a separate article, but for now it is important to know about them two things. There are banks that agree that the life insurance has a certain minimum monthly payment – which may not cover 5% of your credit!

By signing savings, after 2 years you can use part of the accumulated overdraft.

Here are two jokers who will bring some clarity to the apparently illogical behavior of bankers:

First Joker: If you have taken credit and rest – your heirs, accepting the inheritance, accept your credit. Ie. your children, parents, brothers and sisters, etc. are required by law / unless they give up on the inheritance in good time / continue to pay your consolidated loan installments.

Second Joker: When you make a 5-year life insurance – you are required to pay the premium (ie. the total amount of insurance you owe for this period / purchase. If you do not have that much money, the bank can help you pay the entire premium for you and add it to the credit amount. Naturally, you will also pay interest on this amount.

Now we will ask you again the question we started with:

Why do banks require a mortgage-approved client to make a life insurance?

Do you still think that the question is strange?

How does it seem to you the hypothesis that life insurance is just another product that the bank elegantly sells to you . Having a credit card such as overdraft, such as using SMS notification like the egg in the store …

Warning !!!

We really like to point out that life insurance is something extremely important and useful when a person uses credit!

But it is important not for the bank, but for the borrower himself!

Therefore, when taking such an important step as using credit …

Do not leave anything as important as casual life insurance, which will cost you little money and can protect your children from credit slaves !


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Consolidate loans: debt solution Tue, 26 Feb 2019 05:04:20 +0000



The accumulation of different loans, and the different benefits paid as a result, often lead to situations of great over-indebtedness on the part of the families. Consolidating credits is a solution that many people are unaware of for this problem.

It is not uncommon for debts in previous loans whose installments occupy almost all family income, leaving people on the brink of financial despair. But did you know that by consolidating credits, you can reduce your tuition by almost 60%? And you know how? Not? We explain.

Consolidate credits, increase the term and decrease the monthly payment

Number one way to pay a lower monthly fee. Imagine that, due to the vicissitudes of life, you have to contract several credits (a car loan , a personal loan and some other debts on a credit card).

However, these debts have resulted in the accumulation of several installments that it is now failing to cope with. But how does consolidating credits in practice lead to a decrease in the amount payable per month?

Is easy. Imagine that the credits you have to pay have, on average, a period of 48 months. What you will do is to take out a longer-term consolidated loan (for example, 96 months). So, despite getting to pay off the loan for longer, you also pay less per month. And so you get the much-desired financial slack.

And you knew you could consolidate credits and lower the rate you paid?

There is yet another way to pay less per month while consolidating credits. Let’s do the following exercise: imagine you contracted debts on three credit cards with an average APR of 18%.
In order to mitigate the installments payable under that loan, it may incur a consolidated credit with an APR of less than that amount. And so it is already saving some per month. The good news? All the credits consolidated in our platform have lower interest rates than these.


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