When we have several different obligations, at some point they may start to overwhelm us. Even if we are still able to pay the installments financially, it can be hard to remember when to pay which one. This is unpleasant because any slippage in repayment will involve the charging of penalty interest or other consequences. In this case, the solution may be a consolidation loan or consolidation loan. Is it really worth consolidating your debts? When can it be profitable?
Payday loan debt consolidation: easy application
Payday loan consolidation involves joining several payday loans into one. It is performed both at the bank and at the loan company. Importantly, the installment of a loan or consolidation loan should be lower than the sum of installments of consolidated liabilities. Thanks to payday loan consolidation, you may bail yourself out of payday loans.
Debt consolidation in practice:
– efforts to consolidate loans should be preceded by a thorough analysis of our finances to be able to accurately determine how high the installment we are able to repay monthly – remember that consolidation is to help us get rid of debt and facilitate its repayment, not to lead to an even bigger problem,
– we complete all documents on loans, loans and payday loans that we want to consolidate,
– we take a consolidation loan in a bank or a consolidation loan in a non-bank institution,
– we repay our current debt with capital obtained in the form of a consolidation loan,
– thus, we get rid of our debts, and we only have to pay one, lower, adjusted to our current financial options, loan installment after consolidation,
– from now on, we only need to remember about one repayment date and that we can again allow excessive debt.
A consolidation loan is a relatively popular banking service, although unfortunately, not everyone will be able to get it. Banks, as with any other loan, also, in this case, check the creditworthiness and credit history of the potential borrower. People whose majority of the monthly budget consumes installments, or who have already had problems with timely repayment, are unlikely to receive a positive decision. So it is a solution that is real and profitable mainly for those who do not yet have financial problems, and above all arrears and delays in paying installments but feel that they may be approaching.
In addition, consolidation will not often benefit those who can afford to pay their installments on time, and on the contrary, want to get rid of debt as soon as possible, by consolidating and shortening the loan period. However, in this situation, each time you must remember to calculate the exact cost of all current liabilities separately and compare it with the cost of the consolidation loan that is offered to us. Only in this way will we make sure that it will be profitable for us, or that it will be better to stay with the repayment on current terms.
A consolidation loan in a non-bank institution
If we don’t receive a positive decision at the bank, loan companies are an alternative. They grant consolidation loans on similar terms to banks. At the same time, they significantly reduce the formalities and processing time of applications, so they are friendly to both those in debt and those who simply care about time. The only downside is the fact that we can expect much less attractive terms than in the case of consolidation loans at the bank. Undoubtedly, interest rates, as well as commissions and other additional fees will be higher.
Debt consolidation can be a good solution that will allow us to finally breathe and not have to worry about paying off all installments on time. The best option will be a consolidation loan, but if you are unable to get one, you should also pay attention to consolidation loans.