I have a question, how to consolidate loans into one? I would like to have one installment and my debt is outstanding. I am asking for a hint, where is the best way to consolidate loans? in which bank is consolidation most profitable? Of course, many banks offer consolidation loans, to find the right offer, you have to visit several banks and ask for a quick calculation without signing any contract (the request cannot be sent to BIK).
The decision on debt consolidation cannot be taken lightly, because you will tie up with the newly selected bank – for a very long period.
What to consider when choosing a consolidation loan?
- Amount of monthly installment – if the consolidation loan installment offered to you by the bank is smaller than the sum of installments you are currently paying, it is worth to be interested in such an offer.
- Repayment period – the fewer months, the less interest on the consolidation loan you will pay. However, probably when deciding to consolidate loans and borrowings, expect a longer repayment period than if you were to repay each loan separately.
- The total amount of consolidation loan – no wonders here. It is very likely that the total amount of the consolidation loan will be greater than the sum of all your existing loans, unless you took them on extremely poor terms?!?
- APRC loan – about what the APRC is and how it works. Compare the ratios of all consolidation loans and pay attention to the one with the lowest APRC, which is the cheapest.
Considering all four aspects of a consolidation loan, you’ll know which consolidation loan to choose.
Consolidation loan – escape from debt
The operation of the consolidation loan is quite simple and it is an interesting banking product. Unfortunately, if we are looking for a way out of the situation, using such a consolidation loan, it is a sign that something is wrong with our household budget management, or we are getting too much debt beyond our financial possibilities.
It is worth stopping for a moment and analyzing what went wrong, why am I forced to use a consolidation loan? Why can’t I pay my loan installments?
A consolidation loan is often more expensive than the loans we have, because banks grant such a loan for a long period, thus reducing the loan installment. Looking far-sightedly, the payment will probably come to us quite a lot of money.
A consolidation loan with BONUS ?!
If your creditworthiness allows it, it is very likely that the bank will “jump out” with the proposal that you will add a small gift in the form of an additional cash register “for small expenses” to your consolidation loan.
Of course, you must not accept this offer, because you will incur another unnecessary debt, the installment will increase (and this is not what you care about), and the money will go away it is not known what …
Ranking of consolidation loans
As you can see in the attached picture, there are quite a lot of consolidation loans on the market, you will definitely choose the right one. Remember when choosing a loan, be guided by the four aspects I wrote about in the article above!