How Refinancing Can Make Your Balloon Payment Simple

Reaching the end of your loan is an exciting milestone. But if your loan includes a balloon repayment, you may already be thinking about how to manage that lump sum. A balloon payment is a larger final payment due at the end of some finance agreements. It can be helpful because it lowers your monthly repayments along the way, but when it comes due, it can feel like a financial roadblock.

The good news is you don't have to face it alone. Refinancing your balloon repayment with AFS can make this step much easier, while also giving you opportunities to upgrade your car or asset, access extra funds, and keep your finances flexible.

In this article, we'll explore what balloon payments are, why refinancing could be the right choice, and how it can support your next step.

Why Refinance a Balloon Payment?

Roll Your Balloon Into a New Loan

Instead of having to come up with the full balloon repayment in one lump sum, refinancing lets you spread it out into regular, manageable repayments. You avoid a sudden financial hit while still meeting your loan obligations.

Upgrade Your Car or Asset

Many customers use refinancing as the perfect moment to upgrade. If your current car is getting older or you've outgrown your asset, refinancing lets you roll your balloon into a brand new loan and drive away in something newer.

For example:

• Car loan customers often upgrade to a newer model with more safety features
• Caravan owners may refinance into a larger or more modern van
• Motorbike riders may take the chance to switch into something faster or more comfortable

Access Extra Funds

Life doesn't stand still. Maybe you've got upcoming expenses like home renovations, medical bills, or even a holiday you've been putting off. Refinancing can give you the chance to borrow a little extra on top of your balloon repayment, giving you flexibility and peace of mind.

Maintain Repayment Consistency

You've already built the habit of regular repayments. Refinancing lets you keep to a repayment schedule you're familiar with, instead of disrupting your budget with a one-off lump sum.

The Benefits of Refinancing With AFS

At AFS, we specialise in tailored loans that work for real people. We know not everyone fits within the strict rules of big banks... and that's ok. We look at your situation as a whole and focus on helping you move forward.

Some of the key benefits of refinancing with us include:

• Flexibility: Options designed to suit your needs, not a one-size-fits-all approach
• Simplicity: A straightforward application process, with our team ready to guide you
• Support: We're here to make sure you feel confident and comfortable every step of the way
• Choice: Whether you want to just cover your balloon repayment, upgrade your car, or access more funds, we'll help you find the right solution

When Should You Start the Process?

The best time to think about refinancing is before your balloon payment is due. That way, you'll avoid the stress of rushing at the last minute. AFS customers are typically contacted at around 80% of their loan term so they have plenty of time to consider their options.

Final Thoughts

Your balloon repayment doesn't need to feel like a hurdle. Refinancing puts you back in control, whether that means rolling your balloon into a new loan, upgrading your asset, or unlocking extra funds for life's priorities.

At AFS, we're here to help you take this step with confidence and ease.