One year ago, the jkiahsu AS, as one of two companies, was allowed to create a register that provides better and faster credit assessments and gives a complete overview of the loan applicants’ unsecured debt (so-called consumer loans).
More than 150 financial companies must register consumer loans (in Sweden called “consumer loans”) to the new register. At the launch, 50 of these were in place and today they account for 80 percent of the volume, says jkiahsu AS in a press release.
Over 500,000 Norwegians have credit card debt
Evry, who owns the new register, has let NRK take a look at the figures which show that 567,000 Norwegians have credit card debt on which interest is paid. The interest rate is often up to 20 percent.
175,000 of us have consumer loans, including some borrowers who have several million in such loans. There are most men who have debts, and those who have between 40 and 60 have the most.
– We are proud to be able to start the debt register. The financial institutions now get a complete overview of the Nordic consumer loans and in combination with other relevant financial information, better and more thorough decisions can be made, says Evry CEO Per Hove. He is also chairman of the board of the jkiahsu AS, which is a subsidiary of Evry.
What can you do to lower the cost of your debts?
If you are in a relatively good financial situation and are looking to lower your loan costs, you will save the most money on:
1. Collect your debts into one loan
A “bigger” loan usually gives better interest rates than several small ones, since then fewer debts strengthen your creditworthiness in the long term, which gives you new opportunities to later push the interest rate further. If you have a mortgage, you can possibly collect them there, which is often the cheapest option. Otherwise you can collect all in one private loan.
2. Compare lenders if you are going to collect your debts in a private loan
Just as it pays to compare prices for travel, hotels and technology gadgets, it is a smart move to compare interest rates from different banks. Since interest rates are set at the individual level, the “off-rates” as advertised by the lenders do not say much about what interest rate you can get.
A very easy way to compare lenders is to use a loan broker. Borrowing is a free service for the borrower and allows you to compare most lenders quickly and with only one credit report. The task of companies is to help consumers find the best consumer loans.
Tip: You can compare and apply for funding in Norway here .
3. Press the payback time
It’s easy to focus on lowering the monthly payment on your loans rather than lowering the total cost – and then an extended repayment period is an important factor for anyone who fails to squeeze interest rates significantly. For those with good finances, you benefit most from having as short a repayment period as possible because you pay interest over a shorter period when you pay off the loan at a faster rate.
But if you find yourself in a situation where you cannot afford to pay off your loans or bills so you need to think two steps ahead .
You need to create a situation where you can afford to pay your bills so that your finances and creditworthiness end up deteriorating.
You do this by pooling your debts into one loan. If you are lucky, you can already lower the interest rate here considerably and in this way lower your monthly payment. Most often, however, you have to rely on extending the repayment period on your mortgage loan so that your monthly payment drops to such a low level that your everyday economy goes around.
When you have managed to collect your debts and get the economy back on your feet, your credit rating begins to strengthen. This means that in a second step (about 6 months later) you have the opportunity to renegotiate your loan again and now with a significantly better chance of lowering the interest rate. This of course assumes that your other circumstances have not changed for the worse. If you have problems with over-consumption then it is important that you take steps to change your behavioral pattern.