Refinancing guide: what is it and when to do it? 

Featured Posts

Personal Finance

Team MONEYME|11 July 2024| 2-minute read

Feeling the pinch of high monthly loan repayments? Whether you’re looking to lower your monthly payments, consolidate multiple debts, or simply explore better loan terms, refinancing could help. 

Let’s dive into the basics of refinancing, how to do it, and when it might be right for you. 

What is refinancing? 

Refinancing is like hitting the refresh button on your debt. Essentially, you are replacing your current loan or credit card with a new loan, ideally with more favourable terms given your current financial situation. 

How does refinancing work? 

It involves taking out a new loan to pay off an existing loan or credit card. This can help you secure a lower interest rate or change the loan term to reduce your monthly payments, or both.   

Refinancing also gives you the option to consolidate multiple debts at the same time, meaning you use the new loan to pay off your existing debts like credit cards, loans or buy now pay later accounts. This leaves you with one simple monthly repayment and potentially a better overall interest rate, saving you money over the life of your loan.  

Benefits of refinancing 

Unlock savings  

By securing a lower interest rate, you could reduce the overall interest cost of your loan, meaning more money in your pocket in the long run.  

Lower your monthly repayments 

Refinancing can lower your monthly repayments through reduced interest rates or an extended loan term. If you want to ease financial pressure or free up cash for other expenses, refinancing might be the solution for you. 

Tailor the loan to your needs 

Refinancing isn’t just about securing a better rate or reducing monthly payments; it can also help you optimise your loan to better suit your financial goals. Whether you’re looking to consolidate multiple debts, adjusting your loan term, or access additional funds, refinancing can help ensure your loan terms cater to your current financial needs and priorities.   

Is refinancing right for you? 

Life changes like a new job, a growing family, external pressures or evolving goals can all impact your financial situation. If you’re in a different place financially to where you were when you first took out your loan, you might consider refinancing to a loan that better suits your current needs. 

Getting started 

Ready to refinance? With MONEYME, the process is seamless. Our team will guide you through each step, ensuring you understand your options and helping you make informed decisions. 

To refinance your MONEYME loan or credit card, you can call our customer service team on 1300 669 059.
 

If you are looking to refinance a loan or a credit card from a different provider, you can ask for a payout letter from your current provider and apply for a MONEYME personal loan online to pay out your remaining balance.  

Take control  

Refinancing can help you adapt to new circumstances and manage your finances more effectively. Contact us today to explore how we can assist you in achieving your financial goals.