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Consolidation is the combination of different liabilities with each other as part of a larger commitment. Most often talk about payday debt consolidation. PLC website offers payday debt consolidation.
The definition of such a loan is very similar to the definition of a consolidation loan. What is a consolidation loan? A consolidation loan is a financial liability that allows you to repay previously taken loans and borrowings in exchange for one larger loan.
Knowing what a consolidation loan is all about is where you can get it. There is a non-bank consolidation loan granted by a company operating outside the banking sector. In addition, a consolidation loan via the Internet will be very convenient and can be taken without leaving your home.
An online consolidation loan allows you to stop the debt spiral or avoid the risk that the borrower will fall into such a spiral. It allows lowering the installment by extending the loan period. It is easier for the borrower to pay off his liability, but the total amount of total borrowing costs also increases.
Consolidation loans without creditworthiness
Creditworthiness and the credit profile are the basic requirements in each bank for granting loans and borrowings. It is understood as the ability to repay credit obligations within the time limit specified in the loan agreement and repayment schedule, together with interest and other charges. The lack of creditworthiness at the customer means that the bank will refuse to grant a consolidation loan.
A consolidation loan is an alternative to such an offer. You can also take out a loan without creditworthiness. Usually, however, not at the bank, but at non-bank companies.
Loan companies operate in the non-bank sphere, and there they are not covered by the recommendations of the Polish Financial Supervision Authority regarding banks. Therefore, they do not have to check customers’ creditworthiness.
Consolidation loans without creditworthiness are easily available, and the companies that grant them do not have problems with granting loans even to those clients who have some delays in paying their previous liabilities or problems with financial liquidity. However, this situation disclosed to a particular customer may affect the amount borrowed and the final cost of the loan.
A consolidation loan for those in debt
Indebted persons may have debts under various liabilities, including:
- cash loans;
- housing loans;
- car loans;
- cash loans, including non-bank loans;
- installment loans;
- bank loans;
- credit cards etc.
Indebtedness is growing rapidly due to accruing interest on overdue installments, which is why the borrower should do everything possible to free himself from excessive debt as soon as possible, which he is unable to cope with every month’s income.
A way to do this can be a debt consolidation loan. It is a loan that combines other debts but is also granted to those who are already late with their debts. It is not possible with consolidation loans granted in banks.
It is necessary to have a sufficiently high creditworthiness and good credit history in the Credit Information Bureau (BIK). However, when an online consolidation loan is provided for indebted or this type of stationary loan, the loan companies are ready to accept delays in repayment.
A consolidation loan to pay back payday loans
As part of consolidation loans, you can combine different liabilities, not only credit but also loans. Among other things, a consolidation loan may be granted to pay off payday loans. In this case, the customer repays the other payday loans from the loan made available to him before the date indicated in the concluded loan agreements.
On one hand, the consolidation loan for payday loans allows you to get rid of smaller, more numerous liabilities, combining them into one, but also to extend the loan period, which would be impossible with other payday loans.
Consolidation loan calculator
If you are in doubt as to whether to choose a consolidation loan or stick to your current financial obligations, it’s worth reaching for an online calculator that will show you whether a consolidation loan will be a good solution. The calculator will allow you to estimate what capital and interest installment the customer will pay after combining the existing loans and credits.
The following data is entered in this calculator:
- amount of individual loans and credits to be repaid,
- type of liabilities repaid,
- repayment period of existing liabilities,
- interest on current liabilities,
- interest on a consolidation loan,
- repayment period of the consolidation loan.
As a result, we get information on how much repayment loan and interest installment we will payback.
A consolidation loan without BIK and KRD
Many people who already have overdue debts due to unpaid credit installments or loans want a consolidation loan without bases. These are the bases in which the debts of citizens are indicated. The first of them can be found in the Credit Information Bureau.
In its databases, it has information about all borrowers in Poland and about some borrowers because many loan companies decided to cooperate with BIK.
Nevertheless, there is no doubt that the offer of at least several loan institutions includes a consolidation loan with bad BIK. You can also find proposals in which a consolidation loan is granted without BIK and KRD.
In such a case, neither the BIK database nor the National Debt Register database is checked during the verification of the client applying for such a commitment.
A consolidation loan with a bailiff
The spiral of debt can wind up quickly. Entry to BIK or KRD is not the only problem that the debtor has to face. Sometimes a bailiff starts knocking on the door.
Takes care of salary or other assets owned by the debtor. In this situation, only the consolidation loan with the bailiff remains. Some loan companies can also get such a commitment.
Consolidation loan without certificates
The advantage of applying for consolidation in a loan company is that it is usually possible to obtain a consolidation loan without collateral and income or employment certificates. The simplified lending process means that you can get the desired commitment in a short time and consolidate all other debts.
A consolidation loan without certificates usually requires that the lender submits the appropriate application and the client’s statement about the amount of income achieved. You will also need documents regarding the loans and credit repaid to date.
PIT consolidation loan
The loan company may request the submission of a PIT copy from the previous year for the loan application. The PIT consolidation loan is easy to obtain because the basis for issuing the loan decision is then a copy of the tax declaration, which you submit with the application to confirm your creditworthiness.
Installment consolidation loan
When taking out a non-bank loan, in many cases you can decide whether you want to pay it back in installments or once, at the end of the loan period.
One-off repayment is most often used for low-value liabilities. However, installment consolidation loans will be the right choice when the amount is high and you want to break down your debt into smaller parts.
Fast consolidation loan
A quick consolidation loan will allow the debtor to deal with the existing debt in a short time and get rid of it. In return, he will receive one loan to pay, usually with a low installment.
Ranking of consolidation loans
If you are convinced that a good solution in the current financial situation is a consolidation loan, the ranking of such loans will show you where the best liability of this type will be available.
The ranking should pay attention to which of the loan companies’ proposals will be the cheapest. This will be indicated by the APRC loan, i.e. the actual annual interest rate.
The best consolidation loan should have the lowest APRC level, which translates into a lower total cost of lending.