Guide on paying back payday loans with a consolidation loan
Every day, we are bombarded with hundreds of advertising messages that encourage us to buy various products and services. Very popular payday loans are usually easy, and this can lead to a sudden increase in debt. When your finances need bailouts, the answer may be a consolidation loan for payday loans. If you are interested in this form of financing and would like to broaden your knowledge about it, you’ve come to the right place. In this article you will find answers to questions such as: what is a payday loan consolidation loan, what requirements must be met to obtain a payday loan consolidation loan, what is loan consolidation and how to consolidate payday loans. We invite you to read!
How to consolidate payday loans?
Life can be full of temptations and difficult decisions – you don’t have to explain it to anyone who runs a household and manages the family budget. It happens that we are faced with the choice of paying the rent or buying new shoes for the child, and the washing machine also broke. It’s a long way to pay, and we already know exactly what we’re going to spend it on; we have no prospects for additional earnings and the possibility of borrowing money from loved ones, while long bank procedures discourage us or we simply can’t wait for the credit decision, because we need funds “for now”. Then loans-payday loans, i.e. loans of lower sums for a shorter period of time, come to the rescue – usually for amounts from up to PLN 100,000 to 5,000 over a week to 45 days. Often, to obtain them, you only need an ID card and our declaration on the amount of income and expenses ( for maintenance, fees and other credit obligations ) to have the desired money in your account after a few minutes. The ease of obtaining payday loans means that we draw more of them, and over time their repayment can become burdensome. If you have more than one payday loan and want to reduce their repayment costs, a consolidation loan to pay payday loans is a proposal for you.
Credit consolidation – what is it?
At the beginning, however, let’s answer the question, what is loan consolidation? It is a very popular tool in recent years that allows you to reduce the amount of monthly installments, most often by extending the repayment period, and also by the fact that interest or any fees are charged for one, consolidated loan in one bank or financial institution, and not for several de facto the same products. The consolidation loan for payday payday loans has exactly the same laws. What’s more, it is a very good way to optimize our loans and stabilize our financial standing. For many people, this is also associated with increased mental comfort resulting from the settlement of obligations spread in various banks and financial institutions. It is also often the case that consolidation of payday loans becomes an impulse to normalize the household budget.
A consolidation loan for paying out payday loans step by step
To follow step by step what a consolidation loan is and answer the question how to consolidate payday loans, we must distinguish four stages:
First, counting all our payday loans that we want to consolidate. You will need loan agreements and repayment schedules.
Secondly, the repayment of the resulting sum by the bank or financial institution – which in practice means that our payday loans have been closed. However, it must be remembered that in this way a new liability arose, i.e. a consolidation loan to pay payday loans. Now we repay one loan in one place.
Thirdly, divide the resulting sum by the number of months during which the new loan is to be repaid. The rule is simple here: the longer the repayment period, the lower the single installment. So you can inform a bank employee or financial institution, what amount is optimal for us and, most importantly, trouble-free to pay regularly. Then the person servicing the payday consolidation loan for us will adjust the repayment date to our capabilities.
Fourth: additional resources. It should be noted that this is not an option for all customers, but many of them can actually count on cash, which can be used for any purpose. To the total sum of our liabilities in the form of payday loans calculated in the first point, an amount is added, which we pay back with payday loans in low, comfortable installments, but we can spend depending on our needs. This money is paid to us on the account or in cash.