Payday loans debt help -Request loans to help consolidate debt

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Request loans to help consolidate debt

A consolidation loan which bank to choose and what is it, this payday loan consolidation? Is a payday loan consolidation a good solution for indebted people who have several loans?

Yes and no. In the article below you will find the advantages and disadvantages of consolidation… You will learn what a consolidation loan is and in what situation to use it.


Consolidation loan what is it?

A consolidation loan is the same bank loan as cash or cash loan. It really becomes. another debt. It differs in that the money that the bank lends us is intended to repay other bank loans or loans. And the bank determines which loans and loans we can consolidate. The vast majority of consolidation loans are used to consolidate debt resulting from loans and cash loans, followed by car loans, housing loans, and installments.

Some of the banks also allow you to include credit cards and loans in personal accounts for consolidation. In the case of consolidation loans, you do not receive money in your hand (unless it is a loan with additional cash, but more on this later in the entry). The bank transfers money to banks in which you have debt. In this way, credits and loans that you have in other banks are repaid with a new loan: you now have only one loan, with one payment date in the “new” bank.

Types of consolidation loans

We can distinguish two types of such loans: a cash consolidation loan and a mortgage loan. In the case of cash consolidation loans, the interest rate on the loan is similar (or slightly lower) to loans and cash loans. They are granted up to PLN 200,000 and for a period of up to 10 years. Mortgage consolidation loan: a loan granted for a longer period (even 30 years) and much larger amounts. The interest rate is lower (at the level of mortgage loans), but the property is secured (eg a house or flat). The real estate may be part of the consolidation (and thus the loan security) or only with the loan collateral.

Advantages of consolidation loans

Banks, in order to gain new customers, present primarily the benefits of this type of solution:

  • one installment instead of several,
  • the installments are much lower than the sum of installments paid so far,
  • the high amount of unsecured loans,
  • long loan period,
  • additional cash (under the loan, i.e. a new loan included in the consolidation) for any purpose.

Is a consolidation loan always a good solution for everyone? After all, we often hear about the fact that one should not be overly indebted, and further credits and loans can only lead to a debt loop? Without “embracing” our home finances and sanction, no consolidation will help us. Above all, you should think about how to heal your household finances to make more money in your household budget. A consolidation loan will certainly help us improve financial liquidity, but it will not eliminate the debt problem. It is, therefore, necessary to simultaneously reduce expenditure and start planning it in a short and long time. We have to learn to save – less spending – and putting aside money, not just for a black hour. It may turn out that in order to balance the budget, it will be necessary to look for new incomes. Every loan, not only a consolidation, is for people… rich: you give away much more than you borrow.

Expensive consolidation loan

Expensive consolidation loan

This is a beneficial solution in a few cases, which must be supported by the additional measures mentioned in the first part of the article (saving). The decision on a consolidation loan must be made when we know that in the near future we will have difficulties in paying the loan installments. No one is a fairy, but some things should be anticipated: new, long-term expenditures will appear; there will be a significant reduction in income received, etc.

An important principle when choosing any financial product is to compare and analyze it before making a decision. Also in the case of consolidation loans. Consolidation loans and great offers are very beneficial, but we also find weak offers, to put it mildly. In any case, we are not only driven by advertising (emotionally) only to the issue of credit should be approached rationally and analytically. A consolidation loan can help us to get extra cash that can be put off.

A number of things to look out for with debt consolidation

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Debt consolidation can put an end to your financial problems. Loan providers ensures that you get rid of your problems as quickly as possible. If you opt for an debt consolidation, the debt counselors seek out the creditors to make a proper arrangement. There are some conditions attached to that. For example, you must have debts that you cannot pay. However, you must be over 18 years old, registered with the municipality where you live and have an income. Together with you, the professionals ensure that your financial worries decrease little by little.

The duties during an debt consolidation

If you end up in an debt consolidation process, this is not without obligation. Loan providers ensures that you adhere to the agreements, so that you can get rid of all problems quickly. For example, you must be in possession of a valid proof of identity. But there is more, such as the obligation to provide information. You must provide information to your debt counselors so that the financial situation can be properly monitored. The obligation to cooperate is also very important if you have received the agreement for an debt consolidation. The better you cooperate, the easier your financial self-reliance will become.

Will an debt consolidation not work? Then the legal debt consolidation is always an option

With debt consolidation you will get rid of your financial problems in a relatively short time. The debt counselors try to make arrangements with creditors, so that you are free of all problems. Yet it may be that the creditors do not agree with this. Even then Loan providers will continue to support you. With a statutory debt consolidation you pay an amount that you can miss in three years, every month. You do this on the account of your administrator. Does this work? Then you start again with a clean slate. This means that the creditors can no longer claim the residual debt and that you no longer have to pay the debts that you still have outstanding. Even if an debt consolidation would not work, the professional can still help you.

With debt consolidation you will get rid of your financial problems in a relatively short time. The debt counselors try to make arrangements with creditors, so that you are free of all problems. Yet it may be that the creditors do not agree with this. Even then Loan providers will continue to support you. With a statutory debt consolidation you pay an amount that you can miss in three years, every month. You do this on the account of your administrator. Does this work? Then you start again with a clean slate. This means that the creditors can no longer claim the residual debt and that you no longer have to pay the debts that you still have outstanding. Even if an debt consolidation would not work, the professional can still help you.

Categories: Payday Loan Help

Loan consolidation – what it is and how to consolidate a loan debt

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How to consolidate loan debt? What documents are needed for consolidation?

How many times can I do this procedure? In which cases it is profitable to consolidate the debt, and in which not?

Loan consolidation is a change in the terms and conditions of a valid loan agreement (extension of the loan term, deferred payment of debt, reduction of interest on a loan, replacement of currency) to facilitate debt repayment to borrowers in difficult life situations.

When incomes have fallen, overdue loan payments are becoming commonplace, debt is growing like a snowball and there is no way out of this situation, the best option would be to change the terms of the loan.

Not every bank in such a situation willingly goes to meet the client. To increase your chances of success, it will be useful to know what a loan consolidation is, under what conditions it is possible, and what ways there are to convince a lender to consolidate exactly your loan.

When consolidation is required

Experts recommend contacting for consolidation as soon as you feel that it is about to become impossible to pay the loan.

For example, if you were fired from your job or you went to a long hospital . To be ashamed of nothing: for bank employees, such requests from borrowers are common. You still have no overdue debts, there are more chances to consolidate a loan on decent terms.

Another thing is that not every bank will agree to change the parameters of the loan.

The bank itself appeals to the client with a proposal to change the terms of the contract if there is a delay (usually from two months), and the client does not have liquid property that could be recovered as payment of the debt.

Here are a few conditions, without which your application for consolidation will not even be considered:

  • documented valid reasons for the borrower (a sharp reduction in income, dismissal due to the closure of the organization, etc. – see the full list below);
  • the client has not previously consolidated or refinanced loans (the use of the “credit vacation” service in its various forms is also taken into account, so be careful);
  • prior to the current loan, the borrower did not have late payments;
  • client age does not exceed 70 years.

What benefits can consolidation loan bring?

By reducing the monthly credit load, the borrower is able to:

  • Do not ruin the irrevocable credit history (usually data on delinquencies lasting more than 2 months are transmitted to the National Bureau of Credit Histories;
  • to avoid legal proceedings with a bank (for a credit history, this is a mortal sin, and few people like to participate in litigation);
  • save your property from enforcement;
  • repay the loan at a new due date.

Whose loans can be consolidated

Banks have a list of categories of clients that can be included in consolidation programs. Among them:

  • laid off employees due to reduction or closure of an organization;
  • Employees who have been formally notified by the employer of a pay cut;
  • SP, whose business suffered serious losses;
  • owners of foreign currency loans affected by the devaluation ;
  • affected by natural disasters and major accidents.

Several other rules apply when considering consolidation for mortgage holders. Here are the factors:

  • housing purchased with a mortgage should be the only one;
  • net income for each family member (excluding mortgage payments) – no more than three minimum wages ;
  • There is no property that can be used to repay loans (car, securities, real estate).

How is the loan consolidation

1 Fill out the form of the bank. It contains information about the loan, the monthly payments, the reason why the borrower applies for consolidation. You must also inform the bank about your income (provide a 2-NDFL certificate to assess the dynamics of income), major expenses and available property.

With the consolidation of the mortgage provided documents for the acquired property. In addition, most banks provide an opportunity to choose a specific way to change the terms of the contract. Far from the fact that this wish is realized, but one way or another your opinion will be taken into account.

2 We transfer the questionnaire to the department for work with credit debts .

3 We meet with the bank manager , we repeat everything that was written in the questionnaire. Together we choose the most suitable consolidation scheme.

4 We write an application, we attach documents (a copy of a passport, a loan agreement, certificates confirming changes in the level of income).

5 In the event of a positive decision is made a new agreement. It is prescribed consolidation scheme. Please note: if you had a guarantor under the consolidated agreement, it is impossible to start the procedure and make another contract without his consent.

Before signing, make sure that the previous agreement is closed (usually a corresponding certificate is issued), and you are satisfied with the payment schedule for a new document. If you are offered to first sign, then print the schedule – do not agree, ask for full information.

If received a refusal, ask to issue it in writing with indication of the reason. Sometimes it helps in the subsequent trial process. Your obvious desire to repay the debt with a confirmed unwillingness of the bank to create conditions for this may be the reason for the court to oblige the credit organization to consolidate the loan.

Categories: Loan

What to check when comparing payday loan agreements?

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Taking out a payday loan  should always be a well-thought-out act.

Co sprawdzić, porównując umowy kredytowe?

Currently, we find a lot of attractive payday loan  offers in banks and non-bank companies. When we want to borrow money, we should also carefully compare the contract. It is in them that we find key information!

Finding a good payday loan  or bank loan is not very complicated today. We can compare offers via the Internet, use special calculators or rankings. However, we should not decide on a specific one without looking into the contract. By signing it without reading it, we agree to all subscriptions at the same time. What to check when comparing loan agreements?

In a credit or payday loan agreement you will find information such as:

• parties to the contract – the lender and the borrower

• date and place of the contract

• payday loan or credit amount together with the total amount to be repaid

• repayment time of the payday loan or credit with set exact dates

• payday loan repayment rules

• interest rate and other fees, for example, preparation fee, margin

• terms of withdrawal from the contract

• consequences of not repaying the payday loan

Of course, these are only selected information, because in reality there are many more. That is why contracts usually have a few pages written in a small print. They may deter, but in fact the lack of familiarization with the terms of the contract will work to our disadvantage. If we have any difficulties in reading the contract, it is worth asking other people. You can also contact the lender for additional information.

What to pay special attention to when reading the contract?

Above all, we should look at issues related to payments. Let’s check the exact amount of the payday loan and the amount to be repaid. Please note what payday loan costs were included in the contract. Then we can see which payday loan will be more attractive to us.

We should also read the table of additional fees. It defines in what situations a financial institution can take them and what are they. This applies, for example, to the costs of extending the payday loan repayment period or debt collection.

It is also worth to look at repayment terms – when we decide to pay for money , then most often we pay the debt in one installment after 15, 30 or 60 days. On the other hand, in installment payday loan, we pay installments to the designated day of each month. Then we can spread a larger sum for more convenient payments for us.

Installment payday loan with a clear contract

In the payday loan company, we meet the expectations of customers – on our website you can see the payday loan model and its detailed records. Thanks to that our clients can get to know them immediately without having to fill in a payday loan application .

If there are any additional questions related to the offer, we are also available. Our consultants will answer exactly and present the terms of the payday loan so that they are understandable. You can call us, write an e-mail or use the on-line chat.

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