Loan consolidation

Loan consolidation – consolidate your loans up to €70,000 and you can save money

Consolidate all your current unsecured loans into one and you may be able save hundreds of euros on loan costs. Filling out the application is easy, fast, and free, with no obligation. You can safely apply for a consolidation loan and see how much you could save.

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Quick loan decision

You can receive the loan in your account even on the same business day

Multiple loan offers

Receive offers from over 20 banks and financial institutions

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CrediNord is a fully Finnish and trustworthy service

What does loan consolidation mean?

A consolidation loan is an unsecured loan that allows you to combine your existing loans into one, helping you achieve better terms and, therefore, financial savings. The most common types of loans to consolidate are consumer credits, payday loans, installment plans, and credit card debts.

In essence, a consolidation loan can help you save on your monthly loan costs. While the total amount of your debt remains the same, the loan terms improve compared to your previous agreements.

This is how easy loan consolidation is

Calculate the total amount of your debt and use that amount to compare consolidation loans through our service.

Choose the most suitable consolidation loan and use it to pay off your existing loans.

Once the loans are consolidated, only one agreement remains, which you will repay in agreed installments. This way, you only make payments to one place, saving both money and effort.

So, consolidating loans is not complicated but very easy and quick. It’s a simple part of managing your finances and an excellent tool for reducing loan costs.

What are the benefits of loan consolidation?

Many of us might unexpectedly accumulate several different types of loans, such as consumer credits, installment payments, or credit card debt. In recent years, consumer loans have become increasingly popular, alongside traditional payment methods. However, managing multiple loans simultaneously takes time and adds extra costs.

Each loan has its fees and terms. As a result, the combined costs of several loans may add up to a significant amount every month.

  • Lower interest rate: A consolidation loan often has a lower interest rate than individual loans.
  • Flexible monthly payment: You can adjust the loan to better fit your financial situation.
  • Fewer additional fees: Having one loan means fewer fees to pay.

While loan consolidation is not necessary for everyone, it can still provide surprising savings. Additionally, it can offer the benefit of paying off your loans faster. When your loan costs decrease, you can use your current monthly payment to reduce the loan principal faster, meaning the total loan amount decreases more quickly.

  • Lower loan costs
  • Lower interest rates and fewer fees
  • Managing one loan makes budgeting easier
  • You can adjust the repayment plan more flexibly to suit your financial situation
  • Financial management becomes easier and faster since you only have one loan to pay

According to our statistics, our customers save an average of €277 per month on loan servicing costs thanks to consolidation loans.

How is the interest rate for a consolidation loan determined?

As with other loan products, the interest rate for a consolidation loan is determined on a case-by-case basis. Several factors can influence the interest rate, including:

  • Loan amount: Larger loan amounts may offer the possibility of better terms.
  • Borrower’s financial situation and creditworthiness: You may get better terms if your creditworthiness is assessed as strong by the banks.
  • Bank-specific conditions: Each bank has its own terms and margins.

Banks may offer consolidation loans with interest rates as low as 4%. Typically, the best loan terms can be achieved by applying with a co-applicant. A co-applicant is usually a spouse but can also be a friend or relative. From the bank’s perspective, having two applicants is more favorable than one, which can lead to more competitive loan terms.

Remember, receiving loan offers does not obligate you to accept them. You can take your time comparing and evaluating the options, and if you change your mind, you can always decline the offers. We aim to provide you with a transparent and hassle-free way to find the best loan options that meet your needs.

Nainen ja mies katsovat puhelimelta eri lainatarjouksia ja kävelevät samalla
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Find an affordable consolidation loan

Nainen ja mies katsovat puhelimelta eri lainatarjouksia ja kävelevät samalla

What debts are suitable for a consolidation loan?

A consolidation loan offers you a unique opportunity to optimize your finances. This works best when all your unsecured loans are combined into one, more affordable loan.

  • Consumer loans: One of the most common types of loans, also ideal for consolidation.
  • Credit card debts: These often come with high interest rates, making them perfect for consolidation.
  • Installment agreements: Combine these to avoid high interest rates.
  • All other unsecured loans.

It’s important to remember that credit card debts and installment agreements are particularly good candidates for consolidation. These products often come with high interest rates and additional fees. Credit card interest rates can be as high as 20%. By consolidating these loans, you can significantly reduce your costs.

How does loan consolidation work?

Applying for loans might be a regular part of life for many, but a consolidation loan may be a less familiar concept. As a result, many people miss out on the benefits of a consolidation loan because the process may seem complicated or intimidating.

Although the loan product might be unfamiliar, the application process is straightforward and quick. You can easily apply for a consolidation loan by following these tips:

Calculate your total debt: You can find this information from your current loan statements.

Check how much you are paying in fees on your current loans: Use loan calculators to help with this.

Review your current income: Many lenders require proof of income, such as your most recent payslip.

Fill out the consolidation loan application carefully: It’s important to provide accurate information to receive the best loan offers.

Take your time with loan offers: Although we rank the offers by affordability, we recommend comparing them thoroughly.

Remember, loan offers are typically valid for 2–4 weeks, but if an offer expires, you may not receive the same terms again.

Many of our partners offer a service where they offer to pay off your existing loans on your behalf. To do this, you’ll need to provide precise details about the loans being consolidated, so the payments are directed correctly and reduce your debt balance.

  • Current balances: The remaining amounts on the loans to be consolidated
  • Account numbers and lender names for paying off the old loans
  • Reference numbers to ensure the payments are processed correctly

If you’re asked to provide copies of bills for the loans being consolidated, it’s essential to send the most recent ones. This ensures the consolidation process is quick and prevents additional costs.

If you choose a lender who transfers the money directly to your account, you can pay off the old loans from your bank account. In this case, the funds are transferred quickly, often on the same day. Make sure to check the current loan balances before mapankista tai viimeisimmästä laskusta.

Frequently asked questions about loan consolidation

What is loan consolidation?

Loan consolidation means combining different loans, financing agreements, consumer credits, or credit card debts into a single loan. This new loan is intended to cover all or most of the previous debts. By consolidating your loans, a complicated debt structure becomes simplified. Instead of repaying multiple loans with different schedules and terms, you are left with just one loan, with clear and often more favorable terms and repayment schedules than the original ones.

What types of credits are suitable for loan consolidation?

You can consolidate various loans, credits, or payment agreements, up to €70,000. This option allows you to effectively manage interest rates and other loan costs from different sources, such as consumer loans, payday loans, credit cards, or installment agreements. When it comes to mortgages, it’s generally advisable to exclude them from consolidation or combine them as a mortgage-secured loan. This is because mortgage interest rates are often lower than those of unsecured loans, making it more financially sensible to handle them separately.

What are the benefits of loan consolidation?

If you have multiple loans, you are paying fixed fees for each one monthly. Additionally, their interest rates can vary significantly. By consolidating your loans, you have the opportunity to reduce your monthly loan costs considerably. It’s also easier to manage your repayments and overall financial situation when you are repaying only one loan instead of, for example, five.

How much can you save by consolidating loans?

A consolidation loan can save you significant amounts of money in the long term. The savings typically come from lower interest costs and potential administrative fees, as multiple high-interest loans are replaced with one more affordable loan. The amount you can save depends on the interest rates, loan terms of your current loans, and the terms of the consolidation loan. Individual savings can vary widely, so it’s best to determine the exact amount by conducting a personalized calculation.

How to choose the best loan consolidation?

When you submit your loan application carefully and with accurate information, you can receive the first loan offers shortly after sending the application. We arrange the loan offers in order of affordability to make comparison easier for you. Some of our partners can also take care of paying off your existing loans on your behalf. It’s worth considering this option when comparing offers if it seems like a more convenient choice than handling the final payments yourself.

Consolidate Loans and Update the Terms to Suit Your Needs

When applying for a consolidation loan, you can negotiate the monthly payment amount with your new lender. This is an ideal time to adjust your payment schedule if your financial situation has changed. If your ability to repay has improved, you can arrange for a larger monthly payment. On the other hand, if you want to lower your payment amount, you can consolidate your loans and extend the repayment period.

Lower monthly payment

If your monthly income or expenses change significantly, lowering your loan payment might be a smart solution. When facing a permanent change in your life, and a payment holiday doesn’t provide enough relief, it’s time to negotiate with your lender about reducing the payment amount and extending the loan term.

In the case of a permanent change in your financial situation, it’s important to contact the bank early. This helps find solutions before the situation escalates. While lowering the monthly payment can temporarily ease your financial burden, it’s important to remember that extending the loan term increases the overall cost of the loan. As the loan term extends, interest and account management fees accumulate over a longer period, raising the total loan cost.

When you consolidate loans, you typically receive better repayment terms. In other words, your monthly expenses decrease, and you pay a lower monthly installment. 

More flexible loan terms

If you’re facing temporary financial uncertainty and can’t reduce your loan payment or change the due date, applying for a payment holiday might be a good option. During this period, you only pay interest, and the loan principal remains unchanged. The payment holiday can last from 1 to 24 months, depending on your situation and needs. However, it’s important to note that banks may deny a payment holiday if you have payment defaults or overdue payments.

Using a payment holiday extends the loan term and increases the total loan cost, as interest and other fees accumulate over a longer period.
Another option to help during a temporary reduction in repayment capacity is a payment-free month. During this time, you don’t make any loan payments, including interest. The monthly payment is deferred to the future. Payment-free months are typically available for 1–2 months per year but cannot be taken consecutively.

These options vary between banks, so it’s advisable to ask your lender directly. When you receive loan offers through our service, you can see if payment holidays or payment-free months are available. Before applying for a payment holiday or payment-free month, consider cutting unnecessary expenses to continue making regular loan payments.

Is loan consolidation worth it?

Absolutely. Many of us want to save both time and money, which is why loan consolidation makes sense. It’s not just about small savings either—some of our customers save hundreds of euros per month after consolidating their loans.

We process a large number of loan applications every month and also gather feedback from our customers about our service and loan consolidation. Our goal is to continually improve our service so that loan consolidation is always easy, providing financial and time savings to our customers.

  • An easy, good, and quick way to consolidate loans
  • This service definitely found the cheapest loan offer with a monthly payment that suited me
  • The ease of use and clarity make this the best service
  • In this service, fees and interest rates are presented clearly. This is important to avoid surprises later on

In the following example, we’ll address a typical situation where loan consolidation is a smart move.

Consolidate your loans with CrediNordin 

You can receive consolidation loan offers from over 20 banks and financial institutions.

Consolidate loans »

Quick loan decision

You can receive the loan in your account as early as the same business day.

Multiple loan offers

You can get loan offers from over 20 banks and financial institutions.

Secure service

CrediNord is fully Finnish and a reliable service.

Consolidate loans and achieve significant savings – an example

Installment payment options have become more common alongside traditional payment methods, and for this reason, many of us may have multiple installment plans, leading to additional costs.

  • Bicycle purchased in the summer, paid with a credit card. Outstanding loan: €800, monthly payment: €60.
  • A new phone purchased in the fall paid through an installment plan. Outstanding loan: €800, monthly payment: €100.
  • The new sofa purchased from a furniture store paid through an installment plan. Outstanding loan: €1,000, monthly payment: €150.
  • Flexible credit taken during a home renovation. Outstanding loan: €2,000, monthly payment: €150.
  • Dentist visit, paid with an installment plan. Outstanding loan: €300, monthly payment: €30 per month.

For these five loans, the person is paying a total of €490 in monthly payments. They realize that these loans likely come with significant fixed costs each month, and some of the interest rates on the installment plans seem quite high.

So, they decide to consolidate the loans.

The total outstanding debt is €4,900, so they apply for a €5,000 consolidation loan with a moderate two-year repayment term.

This person has a good financial history and strong repayment ability, so they receive the consolidation loan with favorable terms. The monthly payment is reduced to €230*, resulting in savings of up to €260 per month.

*The loan offer is always personal, and it depends on the applicant’s repayment ability and overall financial situation. Request a personalized loan offer easily through our service.

Jarin kertoo tarinansa

Customer story

“I compared and consolidated my loans – now it’s easier to breathe”

Read Joni’s story, where he shares how he decided to compare and consolidate his loans. In the article, Joni explains his situation and discusses the benefits he experienced from loan consolidation.

Read more »
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