Refinancing payday loans 180 months
Transfer your current payday loan to a new one with an extra long term of 180 months? That is now possible. Camibank introduced the refinancing on 12 September. Do you have a current loan and do you want to refinance it so that you increase your current term to 120 months to a term to a maximum of 180 months? Camibank makes this possible. Loans with this extra long term were already possible for residual debt financing and for the renovation of the owner-occupied home. Now also for refinancing your loans. As a self-employed person you are not eligible for this loan. Even if you need a loan more often.
Refinancing: are you really saving?
Camibank offers you a refinancing. You think that is nice and that seems to be so, but if you think carefully and make a calculation, nothing is less true. Offer from Camibank: transfer your current loan to a payday loan with a duration of 121-180 months at 6.4% instead of the usually maximum duration of 120 months at an interest rate of 4.1%. What does that mean in concrete terms?
A calculation example:
|Loan amount||Interest||Duration||Repayment pm||Total|
|€ 50,000||6.4%||180||€ 426||€ 76,680|
|€ 50,000||4.1%||120||€ 506||€ 60,720|
Conclusion : you pay € 80 less each month because you take longer to pay for the loan, but overall you pay € 16,000 more interest. You are therefore much more expensive with the extra long duration . Who takes out this loan? They must be consumers who are staring blindly at the lower monthly payments and do not realize that they are ultimately much more expensive.
Do not repay without penalty
You may not redeem or repay early on the refinancing. If you take out this Camibank loan, you pay a fine of 1% in the first 14 years for extra or early repayment. The penalty interest in the last year is 0.5%. Less flexibility than with a normal payday loan; nowadays you can repay penalties on payday loans for periods of up to 10 years.
Duration 180 months is borrowing with advice
A payday loan with a long term of 180 months is a financial product that cannot be taken out without advice. Execution only parties, who mediate without advice, do not offer this product. You will therefore not escape consultation before you can take out this loan.
180 month duration: not suitable for all loan objectives
You only opt for an extra long term if that matches your loan target. For example, if you want to finance the purchase of a new car, match the term of the loan to the economic life of the car; you want to prevent you from paying off the loan even though the car has already been written off. Long durations are mainly concluded in the case of renovations in and on the home.
Resending loans = saving
You refinance your loans because you transferring your loans or loans yields a saving. If you have ever taken out a loan, it is not a superfluous luxury to check once in a while whether the loan still meets your wishes and fits in with your financial situation. And no less important: check whether you can borrow money more cheaply. You only take out the loan if you are more advantageous. And not only in the short term with a slightly lower monthly payment, but especially what you have lost in total costs.
Take advantage of current low interest rates
The interest rate is now historically low; chances are that you can save a lot after you take out the loan. This applies to both a payday loan and a revolving credit. Of course with a payday loan you have the certainty that you will benefit from this low interest rate throughout the entire term; the interest rate of a revolving credit is variable.
Via an execution-only party you can take out a loan online, whenever it suits you and without consulting. Loans at low interest rates and favorable terms. Calculate via our calculation tool what your saving is after transferring your current loan.