Gather the key figures
Keep the settlement figure, remaining term, monthly payment, APR, total amount still payable and agreement reference together. The settlement figure is time-limited, so check its date before relying on it.
Compare the whole cost
An alternative may change the monthly payment, but it can also change the length of borrowing and the total amount repaid. Check the APR, term, repayment schedule, any fees and early-settlement terms. Use clear figures rather than relying on an advertised example.
When to pause and get support
If your payment difficulty is immediate, contact the current lender as soon as possible. Refinancing is not the only response to financial pressure, and a new agreement may not be suitable for every situation.
Questions to consider
- Can refinancing help in every situation?
- No. It may not suit every agreement or circumstance. Settlement figure, vehicle value, total cost, term and eligibility can mean another approach is more appropriate.
- Can I settle my agreement before its end date?
- Ask the finance provider for current settlement information. The figure and process depend on the agreement and the date of the request.