There is no doubt that the concept of consolidation loan is more and more often dealt with. Here, then, the question arises: what is a consolidation loan. Well, it is a financial product offered by banks that allows you to pay off many other bank liabilities.

I need to consolidate my payday loans

Credit consolidation has its pros and cons

Debt consolidation has its pros and cons.

The first ones include:

Smaller monthly installment. The preferred interest rate on such a loan. Maximum extension of the repayment period. In addition, each bank may additionally propose a specific amount that the customer will receive directly in hand in the form of cash. The customer can spend the funds obtained in this way for any purpose.

By signing a consolidation loan, the client signs a completely new commitment. Therefore, it should be remembered that in such a situation the customer is entitled to a two-week withdrawal period.

A consolidation loan

  • Loan amount up to PLN 200,000
  • Transfer credit and get double
  • Installment lower than the sum of installments of transferred loans
  • Attractive interest rate

The APRC for a representative example is 7.55%.

The disadvantages of consolidation loans include:

Additional costs, commissions, and fees associated with launching such a loan. The repayment time begins to count again, sometimes it is significantly extended compared to how much time it would take to pay each installment.

There is no doubt that a consolidation loan is a great way out of serious financial problems caused by excessive debt. However, banks check the creditworthiness of every potential borrower very carefully.

In addition, before we apply for a payday loan consolidation, we should read the pros and cons at

A consolidation loan

Over the years, consolidation loans have become one of the main products offered by banks. Thanks to him, a person who has many financial commitments and is unable to pay them can go for the proverbial straight line. Debt that can be paid off with a mortgage can have a different nature.

Car loans, cash loans, mortgages and even credit card limits can be repaid in this way. The point is simply to pay off all other liabilities with a mortgage.

A consolidation loan

consolidation loan,money

  • The amount from PLN 1,000 to PLN 120,000
  • Repayment period from 1 to 120 months
  • Option to receive extra money
  • Option to reduce installments for repaid loans

Thanks to debt consolidation we get the opportunity to convert smaller liabilities and loans into one installment. This, in turn, enables the borrower to convert several installments paid during the month into one. So accumulated debt is divided into installments that are easier to repay, over a longer loan period.

Consolidation of payday loan debt

Consolidation of payday loans

  • The amount from PLN 400 to PLN 16,000
  • Repayment time from 1 to 12 months
  • Fee once a month
  • 2nd and 3rd loans without additional fees

If we do not have real estate and want to take advantage of a consolidation loan, we must reckon with a shorter loan period and higher monthly installments.

Let’s analyze our financial situation

Before we decide to take a consolidation loan, it is worth analyzing our financial situation very carefully. You need to check the potential amount of the loan installment and see if we can reconcile its repayment, including other monthly commitments.

In addition, it is worth checking offers on consolidation loans of all leading banks in our country. If we have a problem with choosing the right offer for us, we can turn to a financial advisor for help. It will help us choose the right offer that matches our possibilities and expectations.

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