Consolidation loans -Discover more information about secured consolidation loans
According to the Credit Information Bureau, almost half of adult Poles pay back loans, and about 1 million are unable to deal with it on time. At the same time, about 2 million inhabitants of our country have problems with timely repayment of bills and other obligations. In practice, this means that a significant proportion of us are threatened by a spiral of debt. In such a situation, when we want to offload our portfolio, a good solution is the consolidation of loans.
Discover more information about secured consolidation loans
Among banking services, the consolidation loan is a separate product. In a situation where we repay several installments of a relatively large amount every month, they sometimes become too much of a burden for our portfolio. Thanks to the secured consolidation loan, we can combine several obligations into one and adjust the monthly installment to our current financial capabilities.
The consolidation of loans on such principles is possible in many banks. Using it, of course, is associated with a longer repayment period and higher interest, but it is definitely a better solution for late payments, where we are all the more exposed to interest rising in an uncontrolled manner.
Loan consolidation outside the bank
Loan consolidation is also available in the non-banking sector. It is an opportunity for many people who, for various reasons, cannot receive a traditional consolidation loan. Algorithms assessing the creditworthiness of potential customers in banks are unfortunately ruthless, so this problem can not be overcome. Another problem is that if several loan installments are not repaid on time, relevant entries appear in the Credit Information Bureau database, which practically prevents the use of this type of financial services at any bank.
Non-bank institutions, which also offer loans consolidation, come to the rescue. Usually, the service is ultimately more expensive than in a traditional bank, but in a crisis situation it can save our personal finances.
Loan consolidation on the non-banking market, sometimes opening additional opportunities for clients. Receiving such a loan may be related to receiving additional cash. It should be remembered that liabilities in banks are often not the only debts held by customers. The extra cash can also be a financial cushion or an important investment, for example in education, which will soon contribute to higher earnings. A consolidation loan is not cheap, but it can save our finances.
How to avoid debt?
However, before the consolidation of loans becomes necessary, it is worth avoiding a situation in which a spiral of debt appears. We sometimes overestimate our financial capabilities and misjudge our cash flow. If you are unable to cope with financial obligations and at the same time we do not have a chance to get a bank loan, you may want to consider taking a quick loan in the non-banking sector.
Its repayment can be divided into convenient installments, thanks to which we will avoid accumulating liabilities. A loan of several thousand zlotys, which will improve our financial condition and help us go straight, is a much better solution than falling into a spiral of debt and later looking for not always favorable consolidation of loans.