Borrowing money is extremely simple today. Loans and loans are offered by banks, credit unions, loan companies or even by private individuals. What’s more, borrowing money in the aforementioned institution is very simple. Often, we do not need any certificates confirming our income, we do not need to have a guarantor or other security. In addition, to get extra money, sometimes we do not even have to leave the house, because all the activities necessary to get cash can be done online. So nothing but “take and use”.
Unfortunately, the ease with which we can use credits and loans today means that more and more people have problems with their timely repayment. And usually, everything is very nice. We wanted to buy a new car and the seller at the commission proposed a very attractive loan. So why not take the opportunity and not buy a better car? Then the bank offered us a credit card under special conditions – why not, it may come in handy. We can do something for this in installments, maybe some cash loan. And although at the beginning we think that we are able to “embrace” and pay off the debt on time, after some time it may turn out that in the home budget, we are short on funds to pay the installments on time.
So if we are beginning to have problems with paying off our debt, maybe it is the best time to think about taking out a payday loan consolidation. It is thanks to him that we can pay off all our loans (credit cards, car loans, cash loans, etc.), and we will have one and only one installment per month.
Who can get a payday loan consolidation?
Can anybody get a payday loan consolidation? Of course not. To get a payday loan consolidation, you have to meet several conditions- click. First of all, we need to bring to the bank information about our current debts. The bank will check how much money it has to borrow. Of course, it’s good if we repay our loans on time. Then the bank will “look at us” with a much more favorable eye. If the loans are repaid with a delay, we can get a payday loan consolidation a bit more expensive or with better security.
If the bank already knows how much it has to borrow to repay our debts, the calculation of our creditworthiness will begin. The bank will take into account the costs of not all loans we currently have, but only the one we want to enlist. If the bank decides that it can borrow money, we must offer loan security. Although it will not always be needed. If we have a good income, our credit history accumulated at BIK is impeccable, then the bank may grant us unsecured loans. However, we must be aware that in such a case the maximum period of time it can be incurred, usually will not exceed 8-10 years. However, if we want to pay lower installments and spread the loan for longer, the bank will usually require us to secure it in the form of a mortgage. Of course, it should be free from encumbrances and have the right value. So if all the formalities related to the loan are completed and the loan is granted, the bank will pay off all our debts and give us a repayment schedule for the new loan.
Is payday loan consolidation always worth it?
People who take out a payday loan consolidation, they do it to reduce their monthly credit load. However, we must realize that reducing the monthly burden will make us pay more for our debt. For if the money we borrowed will pay off longer and the debt will be reduced more slowly, we will be charged more interest. We must also add the costs of a possible commission on granting the loan that the bank will charge us, the costs of establishing collateral (mortgage entry, costs of the insurance policy). This is a pretty big sum. However, sometimes it is worth it, because if we do not pay our current debts on time, we will have a past-due interest, costs of reminders, or even costs associated with debt enforcement. And then it will be very large expenses, which are much better to avoid.