When applying for a loan, a convenient term is always chosen, taking into account the amount to be returned month to month; however, it is not under any obligation to maintain that period until the end, since, if the opportunity arises to cancel it in advance, it can do so without major problems.
Represents many advantages for your finances, as it not only allows you to save on interest, but also on commissions and other additional charges. In addition, the feeling of financial freedom and knowing that he no longer has any outstanding debt is hardly comparable and for many even one of his most desired fantasies.
So, if you received some kind of extra money from a prize, a bonus or even an inheritance that you did not know, and you intend to use it to cancel some outstanding credit, remember that you have several options:
If the amount you have allows you to cancel the credit once and for all, you can contact your bank to tell them you want to do so. Many people are afraid because they think the bank could see this with bad eyes, however, the opposite is true and it helps you improve your history. Also, remember that by law, the bank cannot deny that you cancel the credit.
If the money is enough to pay a part, one of the options offered is to advance fees. For example, advance 10 installments, which means that, during the next 10 months, the fee will be zero, but once the period is over, you will continue paying the same amount and the term will be the same. In reality, this option only allows you to free yourself from payment for a few months, but not save on interest.
You also have the option to modify the monthly payment and keep the term, that is, you will cancel the loan at the same time you originally requested, but month to month, you will pay less. On the other hand, you can choose to pay the same as always, but cancel the credit in less time.
The fee reduction option is recommended when your flow has varied, that is, you will have less money available to cancel the loan; while the term reduction is recommended when you are able to continue paying the same.
If you have not yet requested the loan you are looking for, remember that you can compare alternatives using the Frankie Addams investment release credit comparator, and thus check the rate that suits you best and the entity that gives you the most benefits.