Payday loan refinancing is the way for those who have contracted this type of credit, have not repaid all the installments and are having difficulty paying the debt on time or need more money for some emergency.
However, people have many doubts about how it works and when they can perform this credit modality.
So learn today what payday loan refinancing is and how to do it to unburden your pocket. Just read on:
What is payday loan refinancing?
Payday loan refinancing is an operation where you make a new loan using the same amount you already paid on your paycheck / benefit. It is a way to get new credit from the current loan without having to take on a new installment.
Thus, you extend the same contract for a certain period and receive a “change” for this operation.
As well, usually the bank uses the same installment amount returning this to the maximum term of its agreement (example: 72x or 96x) and deducts from the total amount the current outstanding balance of the contract.
When can I perform?
Each bank has its own rules for refinancing the loan.
Therefore, the bank usually needs you to pay approximately 20% of the current contract . Also, you have a balance to be released above the amount allowed by the bank, usually around $ 350.
Few more months to refinance
Finally, the ideal is that the value released is much higher than the value of the current parcel. If the values are close, it is best to wait a few more months to refinance.
Remember that friend who needs this information? Then share on your social networks and tag that person. If you want to know more about payday loans, please contact us. We are glad to help you on how to manage your finances. Good Luck!