Payroll loan refinancing can be an option for those who need to save and need money without much paperwork.
Did the loan installments start to weigh in your pocket? You need to do that financial rescheduling of debt and don’t know where to start?
Thus, in this article we will talk about Payroll Refinancing for retirees and pensioners. Check-out!
What is Payroll Loan Refinancing?
Refinancing is the renegotiation of debt in the same bank, going back to the original term, which pays off the current payroll and starts a new contract, freeing up more money.
In addition, it may be the way for those who have taken this credit, have not yet paid all the installments, but are having difficulty paying the debt on time or need more money to cover any emergency.
As well, it is also interesting if bank interest rates have dropped. Thus, you have the possibility to exchange a more expensive payroll loan for a cheaper new one.
How to refinance the payroll loan?
To refinance the payroll loan, you must have part of the repayments paid (average between 15% -30% of contract settlement). Installations are paid, the outstanding balance decreases and the limit increases.
When refinancing the contract, the current outstanding balance is settled and the difference is released as a new balance into account.
In addition, the more installments have been paid, the higher the (limit) amount released. Amounts released will always be proportional to what has already been paid out of the current loan.
The maximum refinancing term is the same as the payroll loan agreement, with 72 months for beneficiaries.
Since payroll-deductible credit is automatically debited from the benefit, consumers do not have to worry about paying slips or invoices.
Likewise, the value of the installments will generally remain the same, but depending on the number of installments paid, there is also the possibility of achieving a lower interest rate and thus having a smaller installment, freeing up a consignable margin.
When to refinance a loan?
Basically, refinancing is indicated for those who have a financial budget already committed, do not want to pay a portion or already has its payroll margin used.
Some of the advantages of this operation include:
- Maintains the same amount as the installment;
- Possibility of interest rate reduction;
- Release of money (change);
- No consultation.
Therefore, if you have any further questions about Payroll Loan Refinancing, please contact us!