How do today's increased prices affect you with unsecured debt?

We often see families who initially have good finances face financial challenges due to a lot of unsecured debt. Then they have not managed to build up a buffer, because all extra income goes to pay off debt

Over time, this makes these families vulnerable to changes in income, or increased prices, as we see today. For those families who are already living with their heads just above water, increased prices can be what pushes the economy over the edge.  

So, what can you do? 

Something that can have a big impact on your finances is cutting the costs you have on your unsecured debt. Unsecured debt usually has a very high interest rate, so you can get a lot in return to refinance the debt into your mortgage. Home loans have a lower interest rate, and in most cases it will pay to "bake" unsecured debt into such a loan.  

We would always recommend that you contact an adviser at your mortgage bank first. If you have a good payment history without payment notices, you have an opportunity to refinance your debt at your usual bank.  

What if the bank says no? 

If you are refused by your bank, a specialist bank, such as Kraft Bank, may be able to help you. Payment history, debt collection and payment notes do not automatically lead to rejection by us.  

In order to keep control of the finances in a stressful situation, it is important that you cut costs where you can. In addition, you should get good control over how much money comes in, how much goes out, and finally, don't take on more unsecured debt to pay for "old fun". It could potentially make your situation worse than it is today.