A consolidation loan – it is a combination of several loans into one liability (with an installment tailored to the client’s capabilities). Due to consolidation, the repayment period is extended and the monthly loan installment is reduced.
The consolidation is most often chosen by people who have difficulty repaying their liabilities. Remember that extending the repayment deadline (and apparently lowering the installments) may increase the final cost of the commitment.
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Payday loans can be consolidated through https://paydayloanconsolidation.net/.
Remember that by consolidating payday loans you spread the repayment over many months. Therefore, you should first be interested in the banks’ offer. In this case, you can count on better conditions for joining your debts.
How to consolidate payday loans with a bank loan
Banks willingly provide consolidation services (although not all banks want to consolidate payday loans – the list can be found below). The consolidation of payday loans in the bank is that you sign a new loan agreement. You set the length of the liability and the amount of the loan installment. In return, the bank settles your liabilities to loan companies. Such a loan is much more profitable than fees associated with exceeding the repayment date of payday loans.
Sounds too beautiful?
You must remember that when granting a consolidation loan, banks are bound by the same restrictive regulations as with other financial services. This means that bank employees will thoroughly analyze your creditworthiness.
To get a bank consolidation loan you should have
- good credit history
- permanent place of employment (or other source of income)
- security in the form of movable property (e.g. car) or real estate (e.g. flat)
These requirements often pose a challenge for consumers of payday loans. After all, many of them chose the services of a loan company due to the inability to obtain a loan from the bank. However, it is worth getting acquainted with the consolidation offer of banks – this is the cheapest way to get rid of payday loans.
Applying for such a loan is free. Many consumers assess their creditworthiness on their own (which does not necessarily have to correspond to the current analytical requirements of the bank). It cannot be ruled out that your application will be considered positive, even if you think you do not have creditworthiness.
There are two options for consolidating payday loans at the bank: applying for a regular loan (on more favorable terms), which we repay payday payday loans or a dedicated consolidation loan. It is worth familiarizing yourself with the detailed conditions of both types of products. However, as a rule, consolidation loans work better – they are tailored to the needs of clients in a complex financial situation.
Most banks require the following documents before issuing a decision:
- documents regarding income (e.g. certificate from the workplace)
- a set of documents related to payday loans (contracts, repayment schedules, etc.
Which banks consolidate payday loans
The type of liabilities that can be consolidated is defined in the regulations of a particular loan. I present to you a list of banking products that will consolidate your payday loans:
How to consolidate payday loans with a non-bank loan
If the bank refuses to grant you a consolidation loan – you can combine your liabilities with another loan. Remember that payday loans are a specific financial product (even on the non-bank market).
The payday repayment deadline is usually 30 days, while repayment is usually made in one installment.
In payday loans, the most important thing is quick access to additional funds on your account. Due to this, loan companies do not thoroughly check the customer’s creditworthiness (i.e. they bear a greater risk). This risk is compensated by the amount of fees imposed in the event of exceeding the deadline for repayment of payday loans ( exceeding the payday payday payday is simply very expensive ).
Due to this – if you have lost the ability to pay the payday loan – it is best to get rid of it quickly (e.g. by exchanging for another financial product).