Many people repay their loans honestly and with great difficulty, and at the same time think that no other solution can be found. And the way out is, and it’s called a redemption. There are situations when you should not delay switching to another loan.
These are worth getting rid of
If not handled precisely and with great self-restraint, there is a financial product that can easily ‘get away’. Your credit card can generate large debts within a relatively short period of time if you do not meet your credit line delivery deadlines. The reason is the relatively high interest rate, which can be as high as 35% if we do not repay the time we spent. So it might be worth switching your credit card.
Especially when it comes to redeeming a loan,
- if your credit card line has not been used up, but you are accruing more and more debt from month to month.
Overdraft is also a type of loan that can make serious debt. Then it’s worth switching over
- if the limit is a multiple of our monthly revenue and we are using it more and more.
This means that if we get into this situation, we will not be able to catch up with our real payment.
A personal loan can be better controlled, but there are some who are also having trouble paying. It is worth looking for a new loan
- if you simply have too many monthly repayments.
Redemption is easy
We may have been a little cautious when we took out the loan because, for example, we were only looking at the repayment period or focusing only on APR. As new banking products are constantly on the market, we will surely find a better deal. There are banks that offer redemption loans at a more favorable APR, so you can convert a 30-40 percent APR credit card to a 10 percent APR loan.
It is not worth getting into the bad debtor category either, because it puts you on the black list of banks. Even if we manage to pay off our debt, we may have to go through the process of getting it removed from the KHR list.