Payday loan consolidation – financial gain or loss?
Payday loan consolidation, or a combination of all financial liabilities to a banking institution – allows simultaneous repayment of all loans and credits, ie debit, revolving loan, cash loan, payday loans and even a mortgage loan. However, before the debt is combined, one should analyze whether it is a financially viable move for the average consumer.
What is the Payday loan consolidation?
The loan consolidation consists directly in incurring a new financial liability aimed at repayment of earlier financial liabilities. You can also receive an additional amount that can be used for any chosen purpose, including repairing an apartment or buying a new car. The Payday loan consolidation is primarily a simplification of repayment of all liabilities incurred.
Consolidation loans up to PLN 200,000 do not require security in the form of real estate. You can therefore combine all the loans, have one lower installment and pay it once a month. You can breathe financially. Obtaining a consolidation loan, however, is not easy. 90% of attempts to obtain such a loan on their own ends with a decision to refuse a bank . You need to have a lot of knowledge about the internal procedures of banks, bank requirements, checked certificates and calculation of creditworthiness. For this you must skillfully fill out the loan application. In the case of consolidation of obligations, it is best to go to a specialist. On the Internet, the popular blogger Hukins Finance has a brand in this area, which generates such loans for readers (over 85% efficiency). For starters, it is worth to look at the Oliver Twist consolidation loans at us. In this way, you can estimate the cost of such a loan in individual banks, and also ask a specialist.
Interest rate – lowest, highest or new?
At the time of repayment of financial liabilities, it should be remembered that only the new interest rate applies – included in the consolidation loan agreement. In most banks, interest for a consolidation loan is relatively lower than the sum of interest on individual loans. However, with the lower interest rate, the loan period is extended, and as a consequence, the consolidation loan may seem more expensive but in reality at the current level of interest rates it is much cheaper. The savings can reach up to 25%. All this is because the case of a consolidation loan is only 0% for granting it.
What is the difference between mortgage loans consolidation?
The consolidation loan and the mortgage loan are mutually similar. The only difference you can see is the credit limit and the repayment period. In the case of a consolidation loan, there is a relatively higher interest rate as well as a shorter repayment period.
It is worth adding that loan consolidation is often proposed by banking institutions, when the client plans to transfer the whole savings account from one bank to another bank.
A consolidation loan is an excellent solution if you want to settle your total debt. An important aspect is the simultaneous repayment of several loans, as a result of which the client experiences a significantly lower psychological burden, which also directly affects his or her well-being.