Consolidating loans – combine your loans and save money

Instead of repaying several loans or credit card debts, you can realise financial benefits from consolidating your existing loans.

1. Lower interest rates – you can obtain a lower rate of interest than you would with individual payment agreements
2. Smaller monthly instalments – consolidated loans can be adapted more flexibly around your finances
3. Avoid unnecessary billing surcharges or account management fees – one loan means you only have the costs of one loan
4. Clarity for your finances – it will be easier to manage your finances when you only have one loan to pay off
5. Flexible payment plan – consolidated loans can also be repaid over long periods 

Loan consolidation enables our customers to save an average of €277 every month through lower debt servicing costs. 

The lower monthly instalment often results from more favourable loan conditions, lower interest rates, and a repayment schedule that is better suited to your personal finances.

More and more banks and financial institutions are offering loan products for the purpose of consolidating existing debts. Intense competition between banks means the monthly instalment, interest rate, and other costs of consolidated loans can be substantially lower than for credit cards or old loan agreements. 

Consolidate your loans and get your personal finances back on track.

You can consolidate your existing consumer credit facilities, loans, or credit cards without needing to tie up your property as collateral or ask anyone to guarantee the credit you take out to consolidate your loans.

Consolidated loans are often granted at low interest rates

Consolidated loans are usually available at lower interest rates than many payment agreements. The interest rate applying to the loan is determined according to the bank’s risk assessment and the loan sum. The larger the loan sum, the more likely it is to have a consolidated loan with a low interest rate.  

Consolidating loans reduces account management fees

Making loan repayments in several different places gives rise to excess billing surcharges or account management fees, often for no good reason. Taken separately, the account management fees of individual loans or consumer credit facilities may not seem like much on a monthly level. However, they amount to a large sum over the entire loan period.

For example, a monthly account management fee of five euros will accumulate costs of €300 over the life of a five-year loan. The effect of account management fees is multiplied if you repay several loans at once, so consolidating the loans is a sensible step to take, purely in terms of reducing the account management fee.

Consolidating loans with a co-applicant

Banks always base their loan offers on risk assessments, so consolidated loans are often available at lower interest rates when there are two applicants. If possible, consolidate your loans with a co-applicant. The co-applicant could be your spouse or cohabitant partner, for example.

You have a much better chance of being offered the lowest interest rate if you apply with a co-applicant, leading to even bigger savings from loan consolidation.

Sortter can help you reach dozens of banks and financial institutions that grant unsecured consolidated loans with easily predictable monthly instalments and no time-consuming collateral arrangements. 

Loan consolidation clarifies your personal finances

Paying off several loans can affect your personal budgeting. Consolidating loans can clarify your financial planning, as it is easier to budget for repayments on a single loan than for several simultaneous payment commitments.

It is also easier to estimate and understand the cost of credit when you only need to pay the interest and expenses on a single loan. 

The repayment period affects the monthly instalment of a consolidated loan

Nowadays, loans can be consolidated with a long repayment period of up to 15 years. Try out our loan calculator to see how the repayment period affects the monthly instalment and costs of a consolidated loan.

A long repayment period reduces the monthly instalment, but it also increases the costs of the loan. It is a good idea to select a monthly instalment for your consolidated loan that leaves some money left for living on, even if you occasionally need to spend a little more than normal. If you wish, you can always pay back your consolidated loan in larger instalments or pay it off early in one go.

You can consolidate the following loans and credit products: consumer credit, credit card debts, part-payment agreements, and other loans.

It is, therefore, worth consolidating credit card debts or part-payment agreements in addition to your existing loans. Often, credit cards or part-payment agreements accrue monthly account management fees and interest, leading to unnecessary expenses. The interest rate on credit cards and part-payment agreements can be as high as 20%.

A consolidated loan enables you to pay the costs of just one loan instead of several financial commitments.

Loan consolidation involves paying off your existing loans or credit card debts in one go. All that is left for you to repay is a single loan, which is adapted to suit your personal finances.

The Sortter service enables loan consolidation as follows.

1. Fill in the free application on the Sortter website
2. We will get competitive offers for consolidated loans for you from banks and financial institutions
3. Compare the offers and choose the best consolidated loan for you 
4. Sign the loan agreement using your online banking ID
5. Your existing loans or debts will be paid off 
6. In the future, all you need to do is repay one, more affordable loan

Loan consolidation means refinancing your existing loans on better terms. When you consolidate your loans, the amount of debt remains the same, but the loan conditions become more favourable than your previous payment agreements. 

You can try our Sortter’s loan calculator and check the costs of your existing credit agreements before you apply for a consolidated loan. The calculator helps you to build a picture of the interest and other expenses of your debts easily. You can use the calculator to help you work out the costs of your existing agreements, such as consumer credit, credit card debt, and part-payment agreements.

Before you fill in a loan application, it is important to determine how much you need to borrow to pay off your existing credit agreements. If you end up borrowing too much, you may not make optimal savings. However, you will pay interest and expenses on the entire loan sum, so it is important to apply for a loan in the right amount.

When you know exactly how much of your loans are still outstanding under your existing credit agreements:

1. you will get offers for the right loan sum
2. you will also be able to check the savings you are making

Your outstanding debt balance will be shown on your most recent credit bill. Enter this information into the Sortter loan calculator, and you will be presented with your current borrowing costs. You can then compare the costs with the loan offers you receive.

For a first-timer, loan consolidation may feel daunting, but the same rules apply to consolidated loans as for any other loan application. The most important thing is to fill in the loan application carefully and to give the lender the correct information.

The following are some tips for succeeding with your loan application and getting competitive offers.

1. Calculate your outstanding debt balance – you will find this information on the invoices for your existing credit agreements.
2. Costs of your existing credit agreements – you can use the loan calculator to gain an understanding of how much interest and expenses you pay on your existing agreements.
3. Dig out your proof of income – some lenders require proof of your income before granting a loan.
4. Fill in the application carefully – enter your information into the application and check it before you submit it.
5. Take your time to compare the offers – the offers you receive will remain valid for 2–4 weeks.
6. Do not leave it until the last minute – if an offer expires, you may not get another loan offer as good again.

Sortter’s loan comparison service is one of the most comprehensive in Finland, so we believe we can find you a suitable loan offer.

We are always asking our customers to share their experiences of loan consolidation so we can help them find better consolidated loans in the future. Loan consolidation is a common way of rearranging payday loans and consumer credit, and it is increasingly possible to pay off credit card debts at a lower interest rate with a consolidated loan. 

Our customers have had positive experiences consolidating their loans with Sortter.

Here is what some of our customers have said about loan consolidation.

• It’s a good idea to apply for a consolidated loan via Sortter. I would recommend it to others.
• A good, quick and easy way of consolidating loans
• Of the many options I considered, Sortter found by far the cheapest unsecured loan offer with a suitable monthly repayment
• Ease of use and clarity make Sortter the best service
• Clear and quick to use. The costs and interest rates are presented well, and this is a very important thing for customers who want to avoid nasty surprises

The cheapest consolidated loan can be found by asking for personal loan offers from banks and financial institutions. Sortter helps you to reach dozens of lenders quickly and free of charge – and you only need to send one application. 

• Select your desired loan sum and period
• Send the free application – you will receive the first loan offers immediately
• Choose your desired consolidated loan and pay off your existing loans

We want to make loan comparison as easy as possible and, above all, fair for you. For this reason, we are committed to Principles of fair loan comparison.

Compare banks and consolidate your loans with the help of Sortter. You will receive the first loan offers as soon as you submit your application, and our comparison makes it easy to find the best consolidated loan and lowest interest rate.