The dream of owning a car often has to face the reality of monthly installments that can feel burdensome. Especially when faced with high interest rates or a pile of other bills, financial stability can be disrupted. However, before making a drastic decision such as selling your dream car, know that there are several financial solutions that can help ease the burden of installments and reorganize your finances.
Three main options to consider are Top-Up Credit, Take Over Credit, and Debt Consolidation.
1. Top-Up Credit Option: Get Fresh Funds Without a New Application
The Top-Up (or refinancing) option is suitable for those who are already halfway or more through paying off their car loan at one financing institution. Top-Up is a process where you apply for an additional loan limit (fresh funds) at the same financing institution where you have your initial loan. The collateral used is still your car.
2. ‘Take Over’ Credit Option: Reduce Interest and Monthly Burden
If you feel that your current installments are burdensome due to high interest rates or an unsuitable tenor (term), Credit Takeover (or debtor transfer) is the answer. Takeover is the process of transferring your remaining loan from your old financing institution to a new one. The main advantages are lower interest rates and the possibility of adjusting the tenor.
3. Debt Consolidation Option: Simplifying Your Piling Bills
For those of you who are overwhelmed by piles of debt, ranging from car installments, credit cards, to other personal loans, Debt Consolidation can simplify your financial life. Debt Consolidation is the process of combining all your different debts into one large loan. Cars (or other assets) are often used as collateral for these consolidation loans.
The three solutions above give you the opportunity to breathe easier and keep your credit score safe (not in default) without having to give up valuable assets. The key is not to follow the crowd. Make careful calculations and choose the option that truly aligns with your financial situation and long-term goals. Always compare total costs, interest rates, and loan terms before making important financial decisions.
Source: Skorlife.id
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