A consolidation loan is a way to make life easier. However, in order to make it easier, it is necessary to understand how this instrument works, what you can gain from it and how much you can lose – it is not a perfect product, but it also has some drawbacks that can sometimes prove too serious. We will then provide a step-by-step list of questions that need to be answered in order to select the ideal consolidation loan.
Contact us if you need to consolidate your payday loans
The lower the monthly installment, the longer the repayment period, so even at a lower interest rate, the accumulated cost will be higher. So if the basic problem is the fact that the amount of consolidated installments is too high, you have to take into account that lowering it, the loan will be more expensive. So if you can bear such a burden, it is not worth deciding to extend the repayment period.
Applying for a payday loan consolidation at https://consolidationnow.com/, you can combine your loans into one cheap loan with a lower installment, without leaving your home.
How much and what commitments do you want to consolidate?
This is an important question because it is up to him to choose the right method of protection. Some consolidation loans require – due to the size of the liability – mortgage collateral, while others may be granted even without collateral (the collateral is then the receipt on the account). It is also worth remembering that not all banks will undertake to consolidate, for example, overdue bills or selected credit cards. Practically, you can always combine housing, cash, car, and consumer loans.
What date of installment payment do you choose?
The question seems simple and most people reply that it is indifferent. However, it is not – it is worth it if the payment comes regularly, decide to pay the day or two after that date to be sure that the funds will certainly be available. Paradoxically, it will be easier for many people to determine all possible dates for payment on one date – it is not comfortable, but it allows you to wait a long time for most of the month, and not live only from installment to installment.
Do you prefer declining or permanent installments?
Not all loans are flexible enough to give such configuration options, but it is worth considering. Although the combination of the first and last descending installments always looks impressive, the transitions between the consecutive ones are not so clear, and if it is superimposed by changes in interest rates that will probably arise within a few years of repayment, it is hard to say that it would be a much better solution. The advantage of equal installments is primarily their simplicity – of course, they will also change, because the majority of consolidation loans have variable interest rates, but they are not so large changes that they are clearly perceptible.
Additional measures – do you need them?
Many banks are willing to combine a consolidation loan with a small cash injection. Of course, this procedure is not to help customers, but the bank, which thanks to this increases its income, but if for some reason you need additional funds, it is a convenient solution: you will still have to pay only one installment, and the amount of the installments will not change much. In addition, you will not need to submit another loan application.
Consolidation of cash loans in Self
In Self – 1 online application for 7 banks. The applicant obtains preliminary decisions in 24 hours. Then he chooses the best offer for himself. The further closing of the application process is supported by Self, which ensures the finalization of the entire process on the side chosen by the bank’s client. Self – reduces installments by up to 30%. Self – it pays PLN 500 for the first loan installment to the user who always has a loan agreement with the selected bank via Self. The user can apply for free funds, the minimum amount requested is PLN 10,000. Consolidation of cash loans, only for people with a positive history of BIK, ZBP, EFIR.