Banks are increasingly tempting their customers with the “eat cake, have a cake and get a free cookie” offer. Confirming the client’s belief that he can have a lot of obligations and at the same time experience a peaceful month.
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The procedure for a consolidation loan is almost identical to a regular loan. The only difference is that the customer must provide the bank with a certificate (contract) of their obligations. The client can consolidate his commitments in 3 steps:
- Go to a bank and apply for the consolidation of your loans. Attach all necessary documents to the application.
- Receive offers from the bank. If the offer is satisfactory for the client, he signs a contract with the bank.
- The customer starts paying off the loan.
A payday consolidation loan is a good solution primarily because of the reduction in the monthly installment and allowing the customer repayment on time.
What really is loan consolidation?
The consolidation of loans involves the combination of all customer liabilities into one liability, which is usually the lowest installment. Consolidation of the loan always sounds good in the bank’s advertising offers. However, a customer who reports to the bank to consolidate the loan should provide where and for what amounts he is indebted.
However, as with any loan, in this case, the bank always checks if the customer is a solvent person. Despite the fact that the vast majority of customers who reach for consolidation loans often have a problem with paying installments. In this case, it is important for the bank that the customer has a good history in BIK, i.e. he has no repayments longer than 60 days.
Loan consolidation is not free
The consolidation of loans, unfortunately, is one of the more expensive financial products. Unfortunately, the customer extends the repayment period by reducing the loan installment.
Which, in consequence, leads to a larger amount being given back to the bank. The difference in the amount to be transferred will be even greater if the customer selects cash for the consolidated loan. Naturally, choosing additional cash when consolidating a loan is an attractive option for the customer.
Who is loan consolidation good for?
Loan consolidation is mainly offered to those clients who are heavily indebted and thus may fall into a spiral of debt. Thanks to this, indebted people can slowly regain financial liquidity.
Consolidation is also a good solution for people who have trouble remembering the dates and amounts of their installments.