How can you reduce the monthly installment of the loan? Compare your loans with Sortter and take over your financial situation
Life does not always go according to plan. Anyone can get ill, for example, and be unable to pay their original installments as planned. Comparing loans is one way of keeping on top of your finances. Depending on the situation, many banks and financial institutions enable you to change your repayment plan. In effect, this means that you can apply for an interest-only period or reduce the monthly installment.
An interest-only period is a one-time change to the loan’s repayment plan. An interest-only period is recommended if you know you will have lower income for a specific period owing to lay-offs, for example. Reducing the monthly installment is a good alternative if your financial situation changes more permanently and you need a more long-term solution for repayment. This means that your monthly installment will be lower for a specific period.
What are the pros and cons of a lower monthly installment?
The first years of the 2020s have been hard for consumers: inflation has eroded purchasing power and mortgage interest rates have risen fastest since the 1990s.
Reducing the monthly installment is an instant relief to payment problems, but the decision should not be made lightly. Reducing your monthly installment has its pros and cons.
Pros:
- Financial relief: As you are struggling to make ends meet, a lower monthly installment is a welcome relief. As you have to pay less each month, you have more left to do daily things or to pay other loans.
- Better solvency: By paying lower installments, your solvency improves, which may prevent over-indebtedness and damage your credit history.
Cons:
- Longer loan period: A lower monthly installment means that your loan period will be longer.
- Higher overall costs: A longer loan period unfortunately also means that you will be paying more interest on your loan. If your loan is tied to the reference rate, you are subjected to the risk of higher interest rates.
Don’t be afraid of taking a loan – just make sure the terms are good
You may need to take a loan in various life situations. You do not have to be afraid of taking a loan as long as your financial situation is in order and the loan terms are fair.
Loan offers by banks and financial institutions may vary considerably also with regard to the loan agreement, so read the small print carefully before signing.
Comparing loans with Sortter is easy. When you ask for offers through Sortter, you can arrange the loan offers according to different criteria, such as loans with the lowest monthly installment or the lowest nominal interest rate.
A Finnish loan comparison service, Sortter, is the most reliable loan comparison service in the country. Use our free service to compare loans of up to 60,000 euros in just a few minutes.
Comparing loans is easy:
- Submit a loan application on the Sortter website.
- You can receive the first loan offers in no time at all.
- Choose the most suitable loan.
- Sign the loan agreement safely using your banking credentials or mobile certificate.
- The money will arrive in your bank account in a few business days.
Compare your loans and pick the best option for your economical situation.
The Finnish Sortter invests in the quality and topicality of its written content. All our content is based on independence, objectivity, and expertise. In addition, Sortter’s financial experts and marketing team check the content regularly.
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