Everything seems simple, but where to start? Which loans continue? With what interest rate? How long does the loan take and what are the additional costs? If you list everything, you can ask the bank to consolidate your loans. When the bank accepts your request, you will need to provide a number of supporting documents. Then you will receive a repayment plan and you will have to sign it. After that, you simply merged all your loans into one.
Most banks offer this service, but they all have their own conditions. So it is better to make a good comparison. Nowadays, you can even do an online simulation in some banks and find out what your advantage might be.
Can I combine each loan?
Yes, each loan can be amalgamated: personal loans, mortgages, installment sales and credit opening. But as said before: each bank has its own conditions. So, you should check with your bank.
Advantages and disadvantages
As you have already noticed, the combination of loans has many advantages. So, everything is much clearer, you can reduce monthly repayments, there is a lower interest rate and there is only one institution you can count on.
But the merger also has a number of disadvantages. The biggest drawbacks are: the merger increases the duration and the associated costs. But you must also remember that you will pay more in the end. This is due to the higher interest rate and the longer term, as a result of which you pay more interest.
It will therefore weigh the pros and cons. Do you prefer an easy overview with a single bank with a single interest rate? Or do not you think it’s not worth it because you will pay more in the end? The choice is yours!