After taking out a loan our circumstances and needs might change. For example we might find ourselves in the fortunate position where we can afford to repay our mortgage early. For most people though, temporary or longer-term financial difficulties can result in the need for our loan  refinancing. Because there are so many loan types and terms and conditions vary widely, it is only possible to give general information and advice.


For example in the case of a mortgage switching to a lower interest rate package with your lender could ease the burden of your debt although this could also mean your loan period might be extended.

You might consider transferring your mortgage to another lender offering more advantageous terms and conditions which will result in you having a little more spare cash each month to use for other things.

Consider the options available, search the Internet for alternative packages and don’t hesitate to seek professional advice should you feel you need it.

Personal Loans and Credit Cards.

Many people have a combination of personal loan and credit card debt, with sometimes high interest rates and potentially unmanageable repayments. One solution here is to take out a debt consolidation loan to pay off all the others and leave you with a single lower monthly repayment.

Every possible solution to a debt problem can have its downside. In this case your new loan could now be over an extended period and even thought the interest rate may be lower, you could end up paying more for your debt.

In the case of credit cards there are many card issuers now offering attractive low to zero interest rates for balance transfers. By simply transferring your outstanding balance from your present card or cards to new ones you can make a significant saving on interest payments. Make sure you fully understand the terms and conditions that apply before taking on a new card, bearing in mind applications may be declined by the card issuer.


The most important thing to remember if you find you are under pressure financially is that you must not ignore the problem. There are steps you can take to address the issue and prevent it becoming a full-blown crisis. Explore loan refinancing options and seek professional advice should you need it. Discuss your difficulties with lenders where appropriate. In most situations a manageable solution can be found.