How to consolidate payday payments into one loan?
Let’s start with this – what is the mentioned consolidation. This is nothing more than the option of combining several obligations into one loan, for people who do not repay with their repayment. These can be problems with the payment of loan installments, non-bank loans or used debits. Then, the debtor receives new terms of loan settlement – which is associated not only with the extension of the loan period, but also the increase in the total cost of debt. However, sometimes it is the only solution not to fall into even bigger debts.
Thus, by consolidation, the bank or loan company repays all existing financial liabilities – while the debtor begins to regulate a new loan with a new interest rate and a loan period. Of course, consolidation loan at https://paydayloanconsolidation.net/ makes sense only if the sum of monthly installments paid is lower than the load of the debt!
How to consolidate payday loans with your head?
Moments to an extremely treacherous product. It is easy to get, without unnecessary paperwork and queues at the bank, and in addition, the lender transfers the money just after the application is posted. Unfortunately, you usually have to pay them back in a short time, which makes it very easy to exceed the repayment date. And hence the simple way to accrued interest and taking out one loan to pay off the other …
That’s why there are many loan companies on the market that are eager to consolidate customer debt. They are not as restrictive as banks. They do not check their clients in debtors’ databases – which at the same time means that borrowing from them is much more expensive. This is finally the price for reasonable requirements. In turn, in many banks, it is not always possible to obtain a consolidation loan without additional collateral. Although there are exceptions – some of them may offer consolidation of payday loans and other non-bank liabilities after meeting certain requirements. Each client should have:
- Fixed and regular income, which may come from various sources, e.g. profits from rental, business activity or maternity leave,
- A positive story in the debtors’ databases: BIK, KRD, ZBP or BIG “InfoMonitor”.
|Consolidation of payday loans differs from the consolidation of loans in that the payday debtor’s creditworthiness is not taken into account when using payday loans. There is also no need for verification in the BIK database and economic information!|
Consolidating payday loans is a good idea, but …
Before making the final decision on consolidation of liabilities, it is worth approaching the matter skillfully and sensibly. Otherwise – it can cause more trouble than benefits. Because for people who do not count on improving their financial situation, consolidation of payday loans is just a delay in arriving sooner or later – and thus getting stuck in their own debts and meeting with the debt collector who will debt collection!
Therefore, the loan contract for the repayment of debts must be paid within the prescribed time, which is best when it is suited to the individual possibilities of the debtor. Only in such a way will it be possible to avoid a stalemate. That is why new contract terms are important, which really have to lower the monthly installment costs. In fact, some offers of installments may actually be slightly lower – however, the extended repayment date will generate a high, total loan amount, which is definitely not the best solution …
What to look for?
First of all – the costs of the monthly installment must be realistic to pay off! Therefore, it is worth making a detailed analysis of the lenders offering to consolidate the debt. By saving in this way, consider first of all:
- Interest rate – this is the most important element of the loan, which actually affects the final amount of the liability. Just remember that not always lower interest rates are profitable! In the end, other fees may also increase the amount of payday, e.g. commission or margin,
- Commission and additional fees – pay attention to the amount of commission and other fees that may be added to the loan agreement. Sometimes it happens that lenders tempt customers with low-interest rates, but they compensate for other costs – which ultimately bring the debtor into trouble,
- The cost of the monthly installment – check whether you will be able to pay the debt within the prescribed time. The amount of the installment must be adapted to your financial capabilities!
- Negotiation on the installment reduction by collateral – many lenders offer their customers a reduction in the number of installments – provided that the obligation is adequately secured, eg against real estate.
Consolidation of payday loans is to enable every debtor to get out of financial trouble! Therefore, if the offer of consolidation does not meet your expectations, wait for a better opportunity or decide to talk to the loan company with whom you have received support and ask for the debt to be paid in installments! This second option is also real! After all, financial institutions want to recover the money they borrowed. Rescuing consumer bankruptcy can also be a salvage. However, in this case, the situation is not so simple. If you have taken a rest without a moment of remark – the Court can simply reject your application!
In which banks can you consolidate payday loans?
You already know how to break free from the clutches of unpaid wait times. Also, know that it is not worth waiting until the last moment. After all, your debt can be sold to a debt collection company – and then it can only be worse. Read also: How to effectively sell debt? Accrued interest grows at a dizzying pace, and behind your back, you feel the breath of the debt collector … It does not portend anything good. After he remains only a bailiff, who will certainly not be as talkative as his predecessor.
Consolidation of payday loans is worth it!
Despite the existing “traps”, a properly matched loan consolidation can bring many benefits due to:
- Attractive interest rates and costs – consolidation of liabilities reduces the level of interest and the entire loan costs,
- Extended repayment period – many financial institutions propose to spread installments for 3-4 years,
- The high loan amount – up to 200,000 zł. However, the maximum amount of the liability depends on the individual assessment of the borrower.
A CONSUMER lifestyle contributes to debt!
What favors light recklessness? The answer is simple – a consumer lifestyle! In the end, yielding to pleasures and wants is so easily available and “cheap”. At every step lurking opportunities, promotions and rebates of articles that cause the wallet to run out of money very quickly. And then does everybody in need of cash? It’s indebted!
Therefore, the sooner you wake up from your sleep, the better for your finances and well-being. A sincere admission that you have debts will allow you to build solid security for the future. Otherwise – it remains decent to prepare for a meeting with the bailiff.