What is a consolidation?
The consolidation of payday loans is primarily intended to ensure that in the event of problems with financial liquidity (where the sum of your monthly installments of all payday loans begins to exceed your income) be able to effectively reduce all these installments to the level at which we regain financial liquidity again.
4 rules for the consolidation of payday loans and loans
When consolidating payday loans, it would list the four most important aspects that you need to pay attention to so that the consolidation loan or consolidation loan does not make us ” toward “: they are:
1. Installments and the period for which we take a consolidation loan.
You have to choose the amount of the loan installment to be able to repay it calmly and without problems, but you can not decide on too low installments, because then we will extend the loan period, so we will bear higher costs of the consolidation loan.
The conclusion is that the more accurately we choose the amount of the consolidation loan installment for our financial situation, the lower the costs of debt consolidation will be.
2. The moment of applying for consolidation of payday loans.
If we allow even one of the payday loans to be delayed by more than 60 days, then this fact will be recorded by the BIK register.
Then, in most cases, we close the road to obtaining a consolidation loan, because most banks react very badly to the poor credit history of a potential customer and submitting an application for a consolidation loan, then it is pointless.
So remember to make decisions on the consolidation of payday loans before delays occur!
3. Amount of consolidation loan.
I often come across consolidation loans and credits offering an additional amount for any purpose, so we consolidate payday loans and, under the same loan, choose another amount for any use.
This is a huge mistake, because after all, we care about saving our credit liquidity, and not about even deepening the debt! Always apply for a consolidation loan in the amount in which you have debt.
Submission to temptation and choosing an additional amount may end badly …
4. Consolidation loan or consolidation loan?
The rule is simple, consolidation loans in banks are the cheapest, their APRC is usually around 6-7%, unfortunately not every bank agrees to the consolidation of payday loans and loans outside of banks, and besides, as you know, banks are quite restrictive and may not always be advised to meet their requirements.
Then, loan companies come to the rescue, offering consolidation loans. Unfortunately, the APRC of the consolidation loan is usually twice as high as the APRC of the consolidation loan. So you have to be vigilant so as not to get into even bigger financial problems