Tuesday, September 01, 2020

Rearrange debt loans

Johan and Heidi rearrange their debts and loans. With extra money, they also create an additional buffer for new unexpected costs. Johan and Heidi refinance their home loan.

Johan and Heidi are homeowners. Due to the fall in the general interest rates for mortgage loans, they refinance their home loan in 2014 at a lower rate. Working full time and studying children.

Johan and Heidi have an employment contract of indefinite duration. They work full time and have a combined income of $ 4,600 per month.

They have two older children, one of whom continues to study at the university.

Unexpected costs


They will have unexpected costs at the end of 2014. Both their cars fail and they each have to order a new car. To this end, they will shortly take out two installment loans in 2015 to finance two cars.

These two installment loans ensure that their monthly costs increase by approximately $ 580. Despite the high income, this means a large chunk within the family’s budget. Certainly with two growing children. New installment loan to carry out renovation work.

In August 2016, Johan and Heidi will take out an additional installment loan to carry out some minor renovation works.

Rearrange debts and loans to keep monthly costs affordable

Rearrange debts and loans to keep monthly costs affordable

After this last installment loan for renovation work, the couple starts to realize that it is all going to be financially difficult.

In addition to their home loan, they have 3 installment loans and the same number of credit cards. They are looking for a solution to keep their monthly costs affordable.

They ask their insurance broker about the options for rescheduling their debts and loans. In addition, they want to build an extra buffer to cope with unexpected new costs.

Refinancing existing home loan

Johan and Heidi ask their insurance broker about the options for rescheduling their debts and loans. Their insurance broker also mediates in mortgage loans and is therefore well placed to analyze their question and propose a suitable solution.

Together they discuss the path to rearrange the two installment loans (car financing) and at the same time implement the refinancing of the existing home loan. For the extra buffer, he proposes asking for additional liquidity.

What does new home loan meet?


The couple refinances two installment loans and spreads the repayment over a longer term. This makes it possible that they will pay back more interest in the long term.

The new interest rate on the home loan is slightly lower than the original mortgage loan

The wish of Johan and Heidi to regain control of their monthly budget has been granted.

An important lesson to remember is that the rescheduling of loans and loans is not just for everyone. It is and remains an exceptional regime that could lead to solutions. Moreover, you cannot continue to implement this forever. It is therefore better to prevent than to cure. Do you want to discuss your situation with an independent credit broker? Then complete this form. We will get you in touch with each other as quickly as possible.

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