Order the spring edition with the warning document here

Refinancing can give you better finances

ECONOMY: Do you struggle with high expenses on consumer loans, credit cards and installment purchases? If so, you are one of many.


Although the trend is declining in the country, Norwegians still have over 150 billion in consumer debt. Much of this is also defaulted, which means debt collection cases, payment remarks and poor night's sleep.

Consumer debt in Norway

After the so-called Debt Register came into place in 2019, it has become easier to keep track of consumer debt in the population. According to the latest figures from Norwegian Debt Information (1 April 2021), debt from consumer loans and credits has fallen by almost NOK 7 billion in the last three months alone. The figures fluctuate slightly due to credit card use, but the trend is downward, which is positive both for consumers with this type of debt and for the Norwegian economy.

Refinancing to cut costs

Some of the decline is most likely due to the need to borrow when there is a pandemic. We travel less, we postpone the renovation, and have fewer activities at all that require financing.

At the same time, there are probably many who have used the last year to reduce the expenses they have from loans and credits. This means in most cases that they refinance themselves at lower interest costs, he writes DNB on their websites. Figures from the banks also indicate that this is the case. Many report that a larger proportion of the loans they provide now go to pay off other debts.

Having many creditors is most expensive

Those who save the most money on refinancing are usually those who have more consumer loans and debt to credit card companies. In general, interest rates are highest when debt is low. If you then have several small loans, it will normally pay heavily to collect this in a larger loan. The large loans are usually also significantly cheaper than credit cards and installment purchases.

This is an approximate estimate of what the various loans and credits cost:

  • Mortgage loans (Mortgages) – Effective interest rates between 2% and 4%.
  • Unsecured loans (up to NOK 500) – Effective interest rates between 000% and 8%.
  • Unsecured loans (less than NOK 75) – Effective interest rates between 000% and 12%.
  • Credit cards – Effective interest rates between 20% and 35%.
  • Installment purchases – Effective interest rates between 20% and 40%.

Loan example: Effective interest rate 9,64%. 100.000, -, over 5 years. Cost 25.246. Total: 125.246.

In an imaginary case, a person who, for example, owes money to a couple of credit card companies, has a couple of installment purchases, and perhaps a couple of small loans on top, will reduce the number of creditors from six to only one with a refinancing. At the same time, the person will be able to expect that the interest rates will then be reduced from between 20% and 40%, to somewhere between 8% and 15% if he or she used an unsecured loan for the refinancing.

Get out of debt faster

Although the total amount is of course not reduced immediately, the lower costs will enable one to pay larger installments. Larger installments mean that the interest-bearing debt runs over a shorter period of time, and thus costs can be further reduced.

The rules for all loans that do not have a fixed interest rate make it possible to pay larger installments when the borrower himself wants, without incurring any additional fee costs or the like. The question is whether you have enough discipline, motivation and income.

Motivating and easier

The biggest motivating factor is usually to see that costs are reduced. Most people also find it easier to be able to deal with one creditor rather than several. This in turn reduces the risk of reminders and defaults, as well as increased costs and problems.

There is also an important psychological factor at play, namely the feeling of mastery many people get when they take control of debt that may have become a major problem. People who have several loans and credits are often afraid to open the mailbox and inbox, because there may be reminders and demands.

Some tips to find the cheapest solution

A refinancing loan can be only a few hours away from becoming a reality, but it still pays to spend some time finding the best option. This has to do with both the choice of type of loan and the choice of bank.

If you own your own home and have a mortgage, an extension of this loan will be preferable. The alternative is an unsecured loan. You can find these in several dozen banks in Norway, but not all have equally good conditions. If you want to find the cheapest solution, you must obtain offers from as many of the players as possible. On Refinansiere.net you will find an overview of several of the niche banks on the market. Only then do you have a viable basis for comparison.

Here is a to-do list:

  • Secured loan if you can pledge.
  • Alternatively, take out a loan for refinancing without collateral.
  • Get an overview of banks that offer the loan you need to get your debt refinanced.
  • Collect offers from as many of the banks as possible.
  • Prioritize the most expensive credits and loans if you are not allowed to borrow everything you need.
  • Calculate what you can do in monthly installments and choose as short a repayment period as possible.
  • Remember that you can increase the rate of repayment later if you get better liquidity.

Siste artikler

Notification / The government did not strengthen whistleblower protectionThe government did not follow up on the notification committee's proposal, neither about its own notification ombudsman nor its own notification committee.
Finance / Nordic Socialism – Towards a democratic economy (by Pelle Dragsted)Dragsted has a number of suggestions for how employees can get a larger share of the «community cake» – e.g. by shutting them into the corporate executive rooms.
The UN security council / Official Secrets (by Gavin Hood)Katharine Gun leaked information about the NSA's request to the British intelligence service GCHQ to spy on members of the UN Security Council in connection with the planned invasion of Iraq.
3 books on Ecology / The Yellow Vests have the floor,… (by Mads Christoffersen,…)From the Yellow Vests came new forms of organization within production, housing and consumption functions. And with "Degrowth", starting with very simple actions such as protection of water, air and soil. And what about the local?
Society / Collapse (by Carlos Taibo)There are many indications that a definitive collapse is approaching. For many people, the collapse is already a fact.
Radical chic / Postcapitalist Desire: The Final Lectures (by Mark Fisher (ed.) Introduction by Matt Colquhoun)If the left is ever to become dominant again, it must, according to Mark Fisher, embrace the desires that have emerged under capitalism, not just reject them. The left should cultivate technology, automation, reduced working day and popular aesthetic expressions such as fashion.
Climate / 70/30 (by Phie Amb)The opening film at Copenhagen DOX: the young people influenced the climate choices of politics, but Ida Auken is the film's most important focal point.
Thailand / Fighting for Virtue. Justice and Politics in Thailand (by Duncan McCargo)A powerful elite in Thailand – Myanmar's neighbor – has been trying to resolve the country's political problems with the courts for the past decade, which has only exacerbated the situation. In a new book, Duncan McCargo warns against "legalization."
Essay / I was completely out of the worldThe author Hanne Ramsdal tells here what it means to be put out of action – and come back again. A concussion leads, among other things, to the brain not being able to dampen impressions and emotions.
Prio / Silently disciplining researchMany who question the legitimacy of the US wars seem to be pressured by research and media institutions. An example here is the Institute for Peace Research (PRIO), which has had researchers who have historically been critical of any war of aggression – who have hardly belonged to the close friends of nuclear weapons.
Spain / Is Spain a terrorist state?The country receives sharp international criticism for the police and the Civil Guard's extensive use of torture, which is never prosecuted. Regime rebels are imprisoned for trifles. European accusations and objections are ignored.
Covid-19 / Vaccine coercion in the shadow of the corona crisis (by Trond Skaftnesmo)There is no real skepticism from the public sector about the coronary vaccine – vaccination is recommended, and the people are positive about the vaccine. But is the embrace of the vaccine based on an informed decision or a blind hope for a normal everyday life?
Military / The military commanders wanted to annihilate the Soviet Union and China, but Kennedy stood in the wayWe focus on American Strategic Military Thinking (SAC) from 1950 to the present. Will the economic war be supplemented by a biological war?
Bjørneboe / homesicknessIn this essay, Jens Bjørneboe's eldest daughter reflects on a lesser – known psychological side of her father.
Y-block / Arrested and put on smooth cell for Y blockFive protesters were led away yesterday, including Ellen de Vibe, former director of the Oslo Planning and Building Agency. At the same time, the Y interior ended up in containers.
Tangen / A forgiven, refined and anointed basket boyThe financial industry takes control of the Norwegian public.
Environment / Planet of The Humans (by Jeff Gibbs)For many, green energy solutions are just a new way to make money, says director Jeff Gibbs.
Mike davis / The pandemic will create a new world orderAccording to activist and historian Mike Davis, wild reservoirs, like bats, contain up to 400 types of coronavirus that are just waiting to spread to other animals and humans.
Unity / Newtopia (by Audun Amundsen)The expectation of a paradise free of modern progress became the opposite, but most of all, Newtopia is about two very different men who support and help each other when life is at its most brutal.
Anorexia / self Portrait (by Margreth Olin,…)shameless uses Lene Marie Fossen's own tortured body as a canvas for grief, pain and longing in her series of self portraits – relevant both in the documentary self Portrait and in the exhibition Gatekeeper.