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How to safely refund your loan to avoid fees?

Blog | Credit

What is the best way to avoid additional fees when you make a loan? Many borrowers find themselves paying a lot of reminder fees on their current loan. But what are the safest and more convenient means to avoid the additional fees related to a delayed payment? In this article, we will explain the most effective ways to avoid late payments.

Ask a LSV to the bank

A LSV is an authorization of direct debit, also called a direct recovery. With an LSV, you actually give authorization to the office who lent you the money to take themselves directly on your bank account the monthly fee at the end of each month. The LSV will stop once the expiry date of your loan contract is reached. With this method, you neither have to go to the bank nor lose time making the payments online. This way, you can avoid reminders following an omission or a return from holidays.

Create a permanent order

A permanent order is a regular payment order that occurs every month on a set date. You can ask for this order at your bank or post office, wherever you account is located. All you need to have with you are the monthly deposit slips for the refunding of your credit. You can take this chance to also pay a few of your slips, taking advance on your credit refunding. This way, your loan will be refunded earlier and the interests on the months paid in advance will be refunded to you.

Direct debit with a Postfinance account

Only available for Postfinance clients, the principle is similar to LSV : by the end of each month, the recovering activates automatically from your account. This way, you can keep track of your payments.
We can conclude that with the help of these methods, you can make your payments without leaving home or the risk of forgetting and being late with them. When you conclude a credit in Switzerland, always ask for a direct recovering when you sign your contract. Your advisor can help you with that topic.