It will usually pay off to refinance credit card debt with high effective interest rates, especially if you have difficulty paying more than the minimum amount on your credit card each month.
Here’s how you can refinance your credit card debt online and get a better economy, with lower interest rates and monthly costs.
Benefits of refinancing
The main advantage is that you usually get a lower interest rate you have to pay. While a credit card is often 20-30%, a refinancing loan can often halve interest rates. In addition to this, you will also:
- Collect debt and get a better overview.
- Get a better customized repayment plan.
- Lower monthly expenses
What does it cost to refinance your credit card debt?
Interest-bearing credit card debt is an expensive debt to have. Often, the interest rate can rise to 20-30% and therefore it will usually always pay off to refinance the credit debt. What the interest rate will be on your new refinancing loan will depend on several factors, including:
- Your disposable income.
- Your credit score.
- The amount of debt and risk.
Services like the financial tips have made it easier to compare than ever before, here you receive a non-binding offer from several different banks so you can choose the best solution, for free.
Refinance credit card debt with debt collection or payment note
Even with debt collection or payment notes, there are still opportunities to refinance your credit card with a new loan. This loan is called a restart loan and is provided by the Norwegian bank Straightsave Bank.
This refinancing loan is available to those who own a home or property that can be provided as collateral.
- Refinances credit card debt with payment note and debt collection.
- Collects mortgages, debt collection and other loans into one new loan.
The amount you can borrow depends on your finances and the value of your home.
- A maximum of 85% of the value of the property (including any joint debt) If you can provide additional security, the bank can assess whether it is possible to pledge this.
- Maximum 5 times income.
- eTax or valuation from a real estate agent.
- Complete debt overview of all creditors with name, account number and amount.
- 3 latest pay slips and tax notice from you and any co-applicant, you download this from altinn.no.
Effective interest rate 7.25%, loan of 2 million over 25 years, cost USD 2,466,934, totaling USD 4,466,934
Get a fresh financial start
Credit card debt can be an expensive and heavy one to bear. By getting rid of your credit debt you can get a better personal finance and get a fresh financial start.
The article on how to get rid of credit card debt lists many tips on how to go about cleaning up your finances. In addition to refinancing credit card debt, several other important measures should also be taken, such as:
- Review purchases and consumption habits.
- Begin with a budget.
- Make a repayment plan, preferably via the snowball method.
Credit card debt refinancing
With credit card debt refinancing, you can end up saving many thousands of dollars a year and paying down debt and loans faster. Therefore, please use services such as:
- Sourcelend Finance or Yeslend Finance if you do not want to use housing or property as collateral
- Or the restart loan from Straightsave Bank if you have debt collection or payment remarks before.
Refinancing your credit card is something many Norwegians choose to do. Collecting card debt into a new loan with lower interest rates saves the vast majority of money a year.