Bulgarians are borrowing more and larger loans to refinance old liabilities than to use them for their home or car purchase, data of the national representative online survey, conducted by Gemius Bulgaria and commissioned by Postbank, shows. According to the survey, the average loan amount for old debt consolidation is the largest – nearly BGN 13,000 – compared to the loans used for home repairs or car purchase – BGN 12, 000 each – or for furniture purchase – BGN 9,400.
Postbank also reports greater interest in consumer loans used for refinancing. The loan amount customers seek to consolidate their debts increased by 30% on the average, compared to all other purposes customers took out loans for in 2019, as the requests for this type of loans accounted for nearly 50% of all new consumer loan requests Postbank received.
Gemius’ data confirms the trend of the last few years of consumer loans used for the consolidation of old liabilities being increasingly preferred because they enable customers to considerably optimize their monthly household costs. A large number of customers use several credit products at the same time such as consumer loans, credit cards, overdraft, lease or commodity loans. Debt consolidation allows them to considerably reduce their monthly costs, save time and efforts by paying only one instalment to one financial institution.
“Postbank strives to provide flexible financial solutions with added value, which improve customer experience. We know that keeping track of different payment deadlines, maturity dates, instalment amounts takes both time and even greater expenses. This is why, we provide a debt consolidation loan with attractive conditions so that we help consumers save time and money. In addition, in order to improve even more customer experience, we offer fast loan approval, free express issue of debit cards, consultations with Postbank’s mobile expert at a place selected by customers, and insurances,” Postbank commented.
Debt consolidation loans are an easy and convenient way for customers to increase their disposable income without resorting to restrictions. Gemius’ survey shows that the customers, who have borrowed a consumer loan from Postbank, have a dynamic and active way of life. Most of them – 51% – are aged 40-50, have a family and children, a monthly income of BGN 900-2,000 (44.9%). They allocate BGN 400-800 a month to leisure time activities, go to two trips abroad a year (10%) and one trip in Bulgaria (11%), and eat at restaurants at least once a month (24%). The borrowers of Postbank consumer loans visit night clubs at least once every few months (16%), go to the cinema once every 2-3 weeks (13%) and to the theatre – once a week (13%).
Specially developed calculator on https://www.povechednes.bg/ helps all customers calculate by what percentage they can reduce their loan instalments in order to increase their disposable income by up to 50% by borrowing the Debt Consolidation Consumer Loan. For instance, a customer, who uses different credit products – a consumer loan, a credit card and other types of loans, whose total monthly instalment is BGN 524 – can save up to BGN 192 of their monthly instalment by refinancing their debts.
The promotional conditions of Postbank’s debt consolidation consumer loan will be in force by 31 March 2020. Customers can use it to refinance their credit card, consumer and/or mortgage loan liabilities of up to BGN 70,000. More information about the loan conditions can be obtained on Postbank’s webpage, the bank’s specialized centres and offices, by meeting a mobile bank expert or calling short code, *7224.