The short-term loans sector is currently experiencing a real boom in Poland. The so-called payday loans are often the only source of quick access to additional funds for people without creditworthiness. You can enlist a few or even a dozen at a time. Until the repayment of monthly installments exceeds the financial capacity of the debtor. The solution can then be consolidation of payday loans. A summay is on elevagemettey.com
Rescue for the borrower
Sometimes considered to be risky, payday loans can be a very good solution in ad hoc situations. Provided, however, that they are paid regularly. Most problems arise because of two reasons: exceeding the repayment date and treating loans as a permanent source of additional income. For a large group of borrowers, this means loosing a spiral of debt from which they can not get out. A short payback period, which is 30 days, is characteristic for the payday loan. Each delay involves the necessity of extending it for another month, and this in turn with considerable costs. Not paying off a few loans on time, we pay large commissions and penalty interest, but we do not repay the capital – that is, debt is not falling. You need to look for a solution that will help restore liquidity, relieve the home budget and contribute to debt repayment.
What is payday consolidation?
Consolidation of debts is simply a conversion of many loans or credits into one with a lower installment. A completely new loan is being drawn, which allows us to cover all our commitments. In return, we are left with one, new and most importantly lower loan installment. We do not have to worry about many obligations, with different repayment terms.
There are two ways to proceed. With creditworthiness, you can apply for a consolidation loan or a loan for any purpose in the bank and spend it on repayment of debts. Some banks also provide the option of consolidating payday loans. The second option is the non-bank installment loan. Of course, before we decide on one of them, it is necessary to look for and check other options beforehand and to recalculate the costs of such service and estimate whether in the long term it will be profitable enough so that consolidation of payday loans makes sense.
Is it worth using consolidation?
When deciding to combine all obligations, remember that we extend the repayment period and thus pay more interest. However, the consolidation of debt is often the only chance to go out, a small total, at the expense of a stalemate financial situation. That is why consolidation of payday loans is a solution that brings many benefits. The most important of them are:
- Relief of the household budget – a combination of all monthly installments into one, much lower.
- Recovering financial liquidity – spreading commitments over time.
- Protection against consequences of non-compliance with the contract – facilitation of timely repayment of liabilities.
- Easier organization of finances – only one repayment date.
When consolidating payday loans, it is worth remembering not to take out a quick loan for this purpose. Only loans with repayment option in installments make sense in such a situation and give a real chance for success. Before taking out a consolidation loan or a non-bank installment loan, you must carefully assess your financial capacity and calculate the amount that you can spend on monthly repayment.
