What will not come up in our time. Some words are interesting, new services. It is also the case with restructuring and refinancing. What is it, not everyone knows. Now we will try to figure out what it means, and what differences between these services.
When contacting the refinancing service, you enter into a new loan agreement. If you have loans not in a single bank, but in different, then this service will allow you to collect all loans in one. When concluding the contract, not always conditions are the most profitable for the borrower.
Sometimes, people agree only because it is the only option. Over time, they find a more advantageous offer. Of course, the service is quite comfortable, in our opinion. After all, it allows you to cut your monthly costs.
The period of payment of all credit obligations, in contrast to the initial contract, will most likely be extended (it all depends on the bank, and on the conditions he offers to you). To facilitate loan load, refinancing is a fairly profitable service. But you should understand that not all banks can go to meet you, and approve the application for refinancing.
If we are talking about the restructuring service, the contract is not concluded. Another difference from refinancing is the fact that it is possible to restructure debt only in that bank in which you have a loan agreement. Choose another bank and go to it the service does not imply possible.
The restructuring service is usually addressed in case of financial difficulties. The bank can offer you to reduce the interest rate, or reduce the monthly payment. But, before signing the contract, we advise you to carefully read all the proposed conditions.
After all, often the bank offers conditions that are beneficial to the bank itself. For example, the amount of monthly payments will decrease, but your interest rate will remain the same, and the maturity will be increased. Thus, you have a monthly savings will appear, but with it a loan agreement will appear. It is usually issued to people with both good credit history and arising overdue payments. The service is free.
Now you know how to distinguish refinancing against restructuring and vice versa, which means you can choose to choose