Debt consolidation- what is it and when to reach for it?

If you have debt, remember that you can reach for a debt consolidation. The larger loan will cover the existing debt, and you will be able to enjoy the regulation of unpaid loans. What conditions must you meet to apply for a debt consolidation?” > Sometimes we do not deal with the repayment of loans or credits. In addition to extending the repayment period, we can benefit from debt consolidation, and when our debt is severe from debt consolidation. This is the ultimate help desk because it involves high costs. How can we get it? Learn more at

Debt consolidation loan – what is it and who can use it?

Debt consolidation loan - what is it and who can use it?

One of the options to deal with large debt is to reach for a debt consolidation. It involves taking a loan of greater value that covers all outstanding installments. The advantage of this solution is that the borrower remains with one indebtedness, the installment of which is usually less than those which he had to pay back.

Any debt whose debt is so high that even postponing the repayment date would not allow for a smooth payment of arrears.

Types of debt consolidations

debt consolidations include:

  • cash loan – by choosing it, all our debts are combined into one monthly installment. The result is that we do not forget about arrears (as in the case of several smaller debts), in addition, the loan has a lower interest rate;
  • mortgage – usually those who have huge debts decide on him. This loan is characterized by leaving mortgage on pledge. Especially in this case, a consolidation loan is recommended.

What to consider when applying for a debt consolidation?

What to consider when applying for a debt consolidation?

It is worth remembering that while debt consolidation loans are supposed to perform the same task (help in regulating arrears), they differ in the terms on which they can be granted. When choosing a loan for yourself, you should be guided by the current situation and repayment options. The debt consolidation loan will be larger than the existing loans, so it is worth considering whether we can handle its repayment.

Do not forget about the interest rate. These in each bank is different, and what is related to that, we will have to give a different amount to different companies. So let’s choose those offers where the interest rate is lower. Let’s put on institutions that have the opportunity to lend us a satisfactory amount.

How to get a debt consolidation?

How to get a debt consolidation?

If we are looking for financial help, we often use offers of non-bank institutions. In the case of high indebtedness, the amount offered to us may not be sufficient to cover arrears. Then a debt consolidation will help. The process of applying for it is a bit more difficult, because not every bank branch has it in its offer. It is good to carefully check all offers available on the market.

To receive a debt consolidation, we must report to the institution that offers such a solution. We present our request there. It is important to indicate all debts. The concealment of information will adversely affect the bank’s decision. The financial institution analyzing our case sets a specific solution. During this process, our creditworthiness is tested, so it is important to have regular receipts to your account.

The payment of social security contributions is also significant. This is a key element in granting a debt consolidation. We will also need a personal ID, which we will certify the data given to the bank. The institution will analyze our options and adjust the amount of credit to them.

Debt consolidation loan and consolidation loan

Clients of financial institutions very often have problems with loan terminology. For example, they erroneously believe that a debt consolidation is the same as a consolidation loan. So what differences are hidden under these names? A consolidation loan is nothing more than a combination of all debts into one. Thanks to such a procedure, the client is in possession of only one loan, the monthly installment of which is less than the sum of the previous receivables. It is worth adding that consolidation loan is an option only available to those who do not have a delay in repayment.

It is different in the case of a debt consolidation. This one is more expensive. All because the company that gives us support risks a lot. There is no certainty that if we have negative creditworthiness we will pay off new debt on time. Thus, he raises the price of the service provided. Despite this, it is worth using it with financial problems.

A loan to pay off loans

When our debt is not great, it is worth giving up the loan to cover it. Loan companies offer attractive online loans for high amounts that we can easily match our financial capabilities. It’s good to get acquainted with the various offers proposed by these institutions to choose the best one for you. For this purpose, comparison websites of loan companies or internet forums where the clients of a given institution put information about their experiences will work.

It is often the case that if interest is accrued for late payment of the loan, we ask the financial institution for help. One of the options that most companies can count on is refinancing the loan. It involves taking a loan from an institution that works with our creditor. The amount obtained in this way will allow you to pay off the debt, and we will not get into debtors’ registers. It is worth thinking about such a solution before we give up completely and let us bear the consequences of unpaid loans . However, we should be careful when borrowing for the previous ones. By doing this unwisely, we can easily fall into a spiral of debt .

It is Better not to Repay the Loan or Extend it?

As the name suggests, extending the loan consists in the fact that the borrower gains a bonus in the form of an additional period in repayment of debt. For example, if it was 15 days, the postponement is real in detail in such a personally period. Consequently, it is also not worth reaching for the option of extending the time in debt repayment, it is permissible to extend the time of returning the loan only in the time equal to the one in which it was incurred.

A speech here not only about telephone, e-mail, text or letter reminders, but especially about debt collection. The advantage of extending the debt repayment period also seems to be that it exempts from penal interest charged on any day of deferral, the size of which can not be higher than the 4x leg of the Lombard’s National Base. Such a version of the deferment of the so-called Mostly corporations that operate in the non-banking sector can donate seven, fourteen or 40 days more to settle their claims. Each of the activities aimed at giving you the full amount of the loan generates side costs. So before you decide to use it, calculate how much more you will have to pay for this step. Loan companies use various criteria for determining the amount due for extending the loan repayment term, eg you will receive a payday by being a partner of HIllarium, hypocredit or MetLoan. In both companies, loans drawn in 15 or 30 days can be renewed up to two times. On the minus site of the extension of the time to return arrears, it should also be written that usually lenders request a transfer of fees from these loans for a few days before the repayment of the loan designated in the whole contract. Facing difficulties with timely repayment of the network loan at Express Cash or Dufin. what counts is the blinds on the essence of the amount of obligation or rigid tariffs are applied. Only in the whole of really intricate positions the scope of the repayment period is the definitive solution. With a repayment period of sixty weeks, decent fees are paid through the return of the amount in three installments, any of these proposals can be extended only at one meeting.

Extending the repayment is very possible

Extending the repayment is very possible

In favor of postponing the maturity of a loan, the advantage is that there is a kind of protection buffer for a woman who has previously begun the lender’s work with the intention to take borrowed money.

The extension costs are less than the costs of non-repayment

The extension costs are less than the costs of non-repayment

Costs are also a fundamental argument in favor of postponing the original debt repayment period. It then allows you to redefine the convenient date of commitment, corresponding to your material matter.

Do not forget that the choice should be timely payment of the loan. The original amount of loan enterprises are determined individually. For example, although you need to shift your due date by four days, you will still have to pay the expenses related to postponing the repayment at six days. Compared to your conscientiousness, this solution is able to cause higher prices than a prompt.