Consolidation of several bank loans into one loan, with one installment. Below is an overview of banking proposals.
By taking a loan or a loan from the bank, most often we do not think what will happen when the money runs out. “In the worst case, we will take another loan and somehow it will be.” Well, not necessarily… What to do when you do not deal with the repayment of loans?
We have several loans to repay, and for example, a non-bank loan, which we took to settle one of the installments. Do not forget about home charges. How to regulate everything? After all, the home budget is not rubber, and you can not borrow at all!
What can you do then?
Many people talk about a consolidation loan, like a financial drip. It does not solve the problems, but it allows you to regain financial liquidity and start actions aimed at improving the state of our finances.
Every loan requires… saving, because we have to save money from the limited income to repay the loan. This is one of the advantages of credits and loans, because learning how to save can become a habit that will lead to better management of limited resources, which is the content of our portfolio.
WHAT IS A CONSOLIDATING CREDIT?
It is a loan with which we pay off our bank liabilities. Actually, we do not pay it back, but the bank that consolidates the debt regulates the liabilities based on the loan agreements we have presented. And we pay back the new loan.
But instead of a few loans in different banks, we have one loan in one bank. Therefore, we do not have to remember about many payment dates, and besides, this installment should be smaller than the sum of installments that we have paid so far.
CONSOLIDATION LOAN. WHAT WILL I PAY FOR?
How is it possible that we pay a smaller installment? First of all, a consolidation loan is usually slightly cheaper than a loan or cash loan. The nominal interest rate of such a loan should be lower than the average interest rate on the cash loan market. Secondly, a consolidation loan can be taken for a 10-year loan period, in the case of mortgage consolidation loans even for 30 years. The long loan period, with a lower interest rate, allows for a drastic reduction of loan installments.
But the cons are also. In general, the consolidation loan comes out more expensive. An extended repayment period means more interest to pay.
In addition, with a new loan, it is of course already mentioned interest, but also a commission for its granting, insurance and other costs.
If you do not want to use a bank loan, it is a loan from friends or a very expensive non-bank loan.
It should be taken into account that the loan is a short-term solution. Money will always be short of money, loans will multiply until we analyze domestic finances and reduce the cost of living.
CONSOLIDATION OF LOANS
Banks do not offer consolidation loans for repayment of loans in loan companies. However, we can also deal with this problem.
Many people who have problems with regulating the loan do not respond to calls for payment, they do not answer phones. This is a serious mistake, because the lender will still want to get the money back.
Borrowing loan companies to repay the previous debt in another company sooner or later will only lead to a spiral of debt. Even one small payday of PLN 500 can be a source of serious trouble. Each subsequent loan for the repayment of the previous one is an increasing cost.