Very many people have financial problems because of loans that cost a lot of money each month. Interest rates are very different for different loans.
For example, a reasonably cheap private loan may have an interest rate of around 5%. This is a very big difference to the more expensive loans, which often have an interest rate that is four or more times higher.
To illustrate this with a little math,
You can easily say that loans of USD 100,000 with 5% interest will cost USD 5,000 per year in interest. If the loan instead has an interest rate of 20%, the cost will be USD 20,000. This is a difference of USD 15,000 per year which will be USD 1,250 monthly.
As you can see, this is a noticeable amount to pay extra each month and in this example we have not calculated any very high interest rates, there are many loans that can be even more expensive. And it is precisely for this reason that it is a good idea to settle expensive loans.
Examples of expensive loans
In fact, there are many expensive loans that are interesting to get settled. If you start with the most expensive loans, it is a micro loan, but because they are so short you will probably pay off the entire loan directly with all costs and the like.
This means that it will not solve them earlier even if they are expensive. However, if you have taken a micro loan with a maturity longer than a month, it is worth repaying it in advance.
Loans that you should instead focus on are small private loans, which are often somewhere between USD 10,000 – 25,000. These are often clearly much more expensive than the larger private loans.
Another thing you can aim for is goods that you bought on installment. That this is a loan is often something you do not think about, but the fact that it is exactly what they are and they often have an interest rate that is in line with the smaller private loans.
How do you solve the expensive loans then?
The positive is that expensive loans are often private loans, which means that they can always be solved immediately without any extra costs. Therefore, it is largely for you to simply find another lender who can offer you better terms.
If you only have an economy under control, finding a lender who wants to lend you money should not be a problem at all. What you simply need to do to settle your expensive loans is to find the lender that you think is best and apply for a loan that can be used to repay the other more expensive loans. Many lenders even have their own applications for money that are supposed to be borrowed for just this. They also usually help repay the other loans.
If you have a poor financial situation (eg payment notes) it should still not be possible to settle your expensive loans. Many lenders do advertise that you can just settle your expensive loans with them even if you have poor finances. Of course, the chances are reduced if the economy is not good with the opportunity available.