Debt consolidation

Consolidation of the Loan Without Secrets

Credit consolidation is the only way for many people to get out of the financial spiral. If we have several loans already on our account and our financial situation is not improving – it is worth considering a consolidation loan.

A consolidation loan will allow us to combine several debt into one installment.

This will affect the amount of monthly debt, lowering it. We can apply for granting a consolidation loan even if the debt includes a credit card loan, a mortgage loan or if it is a short-term loan – a quick cash loan.

We can consolidate all financial liabilities.

The combination of obligations will be a beneficial solution for people whose budget is too burdened with many installments or for those who sometimes forget about repayment. Credit consolidation can reduce the value of our monthly liability even by 2 percentage points. This is because consolidation results in a longer repayment period for some of the borrowed loans. In reality, therefore, the costs that we will have to incur with the repayment of all liabilities, will increase – but spread over time, they will not be so burdensome for our budget. For additional costs, we must also include a commission for granting the loan by the bank.

Wiele kredytów, jedna rata. Konsolidacja kredytu bez tajemnic

Your obligations can consolidate both banks and less restrictive loan companies. Thanks to the consolidation of the loan, you can get not only a lower monthly installment value, but also more favorable credit conditions or change in the repayment dates of monthly loan installments. This will be helpful if you now receive your pay later than when you decided to take the loan. In addition to the amount that will cover the consolidation of the loan, you also have the option of adding additional cash to it. You can negotiate favorable terms by consolidating a loan from a bank other than the one in which you have borrowed so far. However, it is worth considering whether it is necessary because it will generate additional financial liabilities. The consolidation loan will certainly be an ideal solution for people who, at the expense of longer repayment of loans and interest, want to reduce the monthly installment. By extending obligations in time, it will be easier to cover all current expenses and not get into financial trouble.

Some useful advices related to obtaining a consolidation loan were provided by representatives of the Gafsa website : “When deciding on a consolidation loan, we must remember that the actual value of liabilities increases, so the total costs of all loans taken will be higher than previously assumed. This type of loan will be ideal for people who are aware of the actions taken and expect problems with repayment of debt. The loan will help to avoid even bigger problems resulting from non-payment of loans on time.

A consolidation loan may be a good solution in various difficult and complicated financial situations. Let’s not forget, however, that the debt we have has arisen for some specific reason, so the consolidation loan alone will not save us from making similar mistakes in the future.


Loan Special Repayment

Many loan agreements today offer the possibility to make special repayments. A special repayment that is made outside the normal rate either reduces the monthly installment or shortens the life of the loan. In any case, special repayments ensure that the loan costs are reduced overall, because the interest burden decreases.

Special repayments do not have to have notice periods, but often only once a year. For installment loans, borrowers usually have the opportunity to make a special repayment after only six months. In many cases, the special repayment must have a minimum amount, often three monthly installments. At the same time, with installment loans it is possible to repay the loan in full, with three months’ notice.

Even with mortgage lending agreements for special repayment are increasingly integrated into the loan agreement. Again, the special repayment often have a minimum amount, for example, 2,500 euros. Usually only a maximum of 5 – 10% of the loan amount, depending on the agreement, can be redeemed per year. The total amount of the special repayments may not exceed 50% during the repayment period.

Higher special repayments are usually excluded or tied to normal notice periods. Depending on the institution, special repayments can be made both with and without fees (prepayment penalties). If fees are calculated for this purpose, this can be found either in the loan agreement or in the condition lists of the banks. In order to be able to effect a special repayment, no written application to the bank is necessary. As a rule, the payment of the amount, specifying the loan number, is sufficient for a reference account designated by the bank.

In the case of installment loans, the special repayment may also be drawn directly from the checking account, however, it is necessary to inform the financing bank in advance of the amount and the date of the debit. However, special repayments should only be made if the financial latitude of the customer continues to be guaranteed. The rule of thumb is that you should only make a special repayment if you still have a cash reserve of about 2 to 3 months’ salary.