Refinancing with payment note


First; A payment note is a note registered to you as a person for an outstanding claim. This can be from a debt collection case that has led to salary deductions, garnishments, liens or bankruptcy.

If you have any of the above, you will receive a payment notice registered on your person. To get rid of the payment notice, refinancing can be a possible solution. We offer refinancing with a payment notice to people with challenging finances who can provide security in housing.

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Refinancing – What does it mean? 

There are many ways to take out a loan. Credit cards and consumer loans are examples of unsecured loans. This means that you can borrow money without providing anything of value as security for those who give you a loan, in return for paying a higher interest rate. A mortgage is an example of a secured loan. The bank that gives you the loan takes a mortgage on your (or someone else's) home, in exchange for you being able to borrow money at a lower interest rate.   

Refinancing means that you move or combine loans for a new loan, usually with better terms. For example, a lower interest rate or a longer payment period.   

Refinancing with security in housing usually means combining your existing unsecured loans into a new mortgage. This gives you a lower interest rate and a longer payment period. In other words, the loan costs you less, and in addition the monthly costs are lower, because they do not have to be repaid as quickly. 

Payment Note - What is the consequence of having it? 

Banks, credit card companies and most people who sell something on credit check your ability to pay. If they then see that there are payment notes registered to you, this will often lead to an automatic refusal.  

It will cause problems if you are going to: 

  • Rent an apartment 
  • Create a subscription. For example, mobile subscription, electricity, TV, etc.  
  • Shop on credit 
  • Take out insurance 
  • Apply for a loan 

In addition, the claim against you will be more expensive. On top of the original claim, there will be fees and charges that you will have to pay to get rid of the notice. If you do not manage to pay this, your creditor can, in the worst case scenario, ask you to put your house up for forced sale. 

Refinancing with payment note 

At Kraft Bank, a payment notice is not an obstacle to being able to refinance your loans. Several of our customers have unclear and often complicated finances that we can help to sort out.  

By providing a home as collateral, there are opportunities to refinance loans with payment notices into a new home loan. Then the bank collects all your debts into one new loan, usually with better conditions and a better overview. In this way, your payment notes are deleted and you get a fresh new loan. The interest you get on the new loan is usually higher than the interest you had on your home loan before, but it is significantly lower than the interest on consumer loans and credit cards. In this way, the monthly cost will be smaller and you can regain control of your finances.  

Our common goal is that you should be able to move your loan back to an ordinary bank. With us, you get an interest rate guarantee for 3 years with no lock-in period, so that you can move your loan when you are ready and have regained control of your finances.  

It is a requirement from our side that a refinancing loan should be helpful, and we therefore do not grant loans unless we see that you will get a better situation.  

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Financial first aid - refinancing

This article is part of the category Economic first aid , a collection of articles that deal with topics related to a strained economic situation, such as reminders and collection, payment notices, garnishments and forced sales. Read more about Financial first aid

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