Is There A Way To Reduce The Installment Of Foreign Currency Loans?

Everyone who has a bank commitment is well aware of the fact that it is a huge financial burden for him. For regardless of whether it is a cash loan, a mortgage loan or some other loan, we have to send back a monthly amount from our home budget that we could use for something else. However, if not for a loan, we would not buy a home, a car, or would not go on a dream vacation. In short, anyone who takes out a loan should be aware that after some time you will have to give it back.

If we know much earlier, how much we will give to the bank a month, we can plan our other expenses well. And in most cases, borrowers know how much money to spend on a monthly installment, because we get a repayment schedule from the bank, in which everything is accurately calculated. However, there is a group of borrowers who never quite know how much each month they will have to spend money to fully cover the bank installment. These borrowers are those who have a mortgage loan. Although they get information from the bank about the amount of the installment, it is given in the currency in which the debt was incurred. And because we usually earn in zlotys, we need the currency to repay installments. Unfortunately, we do not know what the exchange rate of a given currency will be, because it is constantly changing. These changing installments were felt especially by those who have mortgage loans in francs. When they took out loans several years ago, the franc exchange rate fluctuated against PLN 2. Today, for one franc we have to pay over PLN 4. As you can guess, the loan installment in this case increased significantly. If someone is supposed to pay back 400 francs a month, at a rate of 2.5 zlotys, he had to spend 1,000 zlotys per installment. Today, when the franc rate is around PLN 4, PLN 1,600 should be allocated to the same installment. The difference here is very large.


So it is not surprising that many people today have great troubles to repay their debts in a timely manner. Some have to look for additional sources of income, some are trying to negotiate with the bank to extend the repayment period, so that the monthly installments will fall. But there is one more way to lower the monthly installment, which more and more people are willing to use. This possibility is given to us by the anti-spreading law, which says that a person with credit in a currency can “bring” the currency to the bank to pay off the installment. And how did it look before the entry into force of this law? The banks themselves exchanged our zloty for the currency using their own rates. As you can guess, these rates were beneficial for the bank, and not necessarily for the borrowers. Today, you can bypass banks, buy currency in exchange offices and pay it in the form of installments. Exchange offices offer much better rates than banks, so we can save a lot of money on installment. Especially if we use some online currency exchange. They work a lot and they are becoming more and more popular.

How much can you save on this exchange? Let’s return to our installment, which is 400 francs. If we check the exchange rate of this currency in PEKAO bank, we will see that for one franc we will pay PLN 4,285. And so for our 400 francs, we have to spend 1 652, 4 zlotys. However, if we buy these 400 francs in the online exchange , where the exchange rate for one franc is currently PLN 4.0614, we will issue PLN 1 624,56. So we will have 27.84 PLN in our pocket. If we save as much as every month, it will give us PLN 334.08 a year. And if we have 10 years to repay, we will in total have 3,340.8 zlotys. It is definitely a big sum. It can be even higher if our installment is higher or more than 10 years left to repay.

Everyone who has a mortgage loan, should set up an account in an online currency exchange office and exchange currency through it. It is not a complicated matter and everyone should deal with it without any problem. And then we will only have to count the money we save by buying currencies online.

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