Monthly Archives: March 2019

Consolidation of payday loans – how to do it?

The deadline follows the deadline. Are you starting to lose your payday payments? There is a simple solution for this – consolidation of payday loans . If you have several installments payable at different times, you can use consolidation. Consolidation allows you to simplify finances by replacing multiple installments with one. Thanks to consolidation, you will get rid of the burden and continuous extension of repayment deadlines. Remember that rollover of payday loans exposes you to extra, very high fees. There are several ways to choose and consolidate your finances.

Do banks consolidate payday loans?

One of the possibilities is a consolidation loan at the bank. It is worth looking for the best offers and use credit comparison engines. Often the differences in interest rates are significant, and this means that the monthly installment may vary by up to PLN 400 (with a loan of 70,000 for 7 years). When preparing to take a consolidation loan at the bank, you will have to prepare for a longer procedure. The income and creditworthiness will be subject to verification. Banks demand presentation of documents confirming income, for example, from a workplace certificate or proof of payment to an account. The bank will also check information. One can learn from them how the repayment history of existing and repaid loans looked like. Every loan repaid successfully, credit card, installment loan for the purchase of equipment results in an increase in the score. High scoring means that you are fulfilling your obligations. You are a borrower. Thanks to this, you can be sure that the proposal for a consolidation loan will be attractive.

Consolidating payday loans with another loan.

Another option to pay off a few payday loans is to consolidate liabilities through an on-line installment loan. You will get such a loan online. It is important to apply for a loan in a proven company. Loan companies must operate in accordance with the law, in particular in accordance with the provisions of the anti-usury law. Thanks to these provisions, unfair practices and inflated loans have been reduced. The limit of the non-interest loan costs has been introduced: insurance costs, commission costs, preparation fee and costs related to domestic servicing. Thanks to this you can feel safe using the on-line loan. In order to effectively consolidate payday loans on-line, you need to choose a company that will offer a sufficiently high amount and a long loan period. In contrast to payday loans, on-line loans are granted up to 48 months. This allows us to spread the burden of the commitment for a convenient period for us. Just getting a loan is not complicated. All you need to do is use the form available on the loan company website. If the verification is successful, you will receive a decision to grant the loan. The cash alone will affect your account up to 24 hours.

Getting rid of a delay by anti-inducing.

If you do not receive a loan and you are threatened with debt recovery, you can take advantage of anti-induction. If you have not met with this term, it simply means counteracting debt collection. Anti-vicious activities may be different. To the extent permitted by law, they cause a reduction or liquidation of debt. Antyquickers have considerable experience, most often they are lawyers or former employees of a debt collection company. They indicate a strategy that allows you to get rid of debt. It may be spreading debt into installments, partial or total redemption of interest, and the creditor’s withdrawal from enforcement activities. It may also be necessary to resume legal proceedings or apply for remission of enforcement proceedings. Choosing the best route depends on the stage on which your case is located. Antivindication companies provide advice on how to get out of trouble. In the best antivindication companies, you pay only for the action, there is no fee for recognizing the case. A debt relief plan is being prepared that will allow you to benefit from the restructuring of payday loans. A good anti-vibration advice will help you get out of trouble. Regardless of how you consolidate payday loans, remember that it is easier to pay one installment than a few.

Loan consolidation. Notion Conditions

Debt consolidation is a change in the current conditions of the loan agreement concluded with the bank. This procedure is carried out only by the bank that issued the loan to the citizen.

Loan consolidation

consolidation services are most often intended for citizens who currently have no financial ability to repay debt in the same way. That is, for citizens who have fallen into a difficult situation, which has resulted in the inability to make monthly payments in full.

The essence of loan consolidation

Standard loan debt consolidation looks like an increase in the loan repayment term. In fact, a new loan agreement is concluded with the borrower with the closure of the old one or changes are made to the current payment schedule. Each bank can carry out this procedure according to its own algorithms.

As a result of the increase in the repayment term, the monthly payment is reduced, the debt burden on the borrower is reduced. The new term is chosen in such a way that the payments are as a result feasible for the citizen. As a result, the client does not go into the category of problem and does not spoil its credit history .

As a result of the increase in the term, the total overpayment also increases in proportion, therefore, consolidation a loan cannot be called beneficial for the client . But in any case, if necessary, it is worth holding it so that the debt does not acquire penalties and fines, as well as for the benefit of its own credit history. In the future, when the financial situation of the debtor improves, there is always the possibility to make full or partial early repayment of the debt in order to reduce the overpayment.

How and when to consolidate loan debt?

For consolidation, you should contact the lending bank with your problem. In the bank office you will be directed to a specialist who deals with problem contracts. This may be a collection service or a bank security, each institution itself determines which department deals with the consolidation of credit debts. Usually this department is located in the central office of the bank or in the largest branch in the settlement. You can call the bank’s hotline and find out who and when you can contact.

Important is the question of when to contact the bank for debt consolidation . It is important to note here that this should be done in advance, before the very fact of the overdue monthly payment has come. In this case, there will be no fines and bad credit history; the current terms of the loan agreement will be changed without any damage to the borrower. So, if you understand that the moment is close when you will not be able to make the next monthly payment, do not delay the time, but immediately contact the lending bank with a request to consolidate the credit debt.

Many borrowers mistakenly believe that they may face a negative when contacting the bank with their problem. But this is not at all the case. Banks are also interested in having as few problem loan agreements with overdue payments as possible. This fact affects their reputation in the eyes of the Central Bank, and this is extremely important for lending organizations.

If you already have a current debt, it will be more difficult to make consolidation in such a situation. The contract has already moved to the row of problem ones, penalties and fines are coming over it. Not every bank will agree to meet the borrower’s needs and consolidate the existing problem debts. So, be prepared for the fact that you still have to pay all the fines and get up to the payment schedule, solving your financial problems. But in any case, contact the bank with your problem, it is possible that they will still help you.

Most often, banks themselves offer to make debt consolidation under a problem agreement, as the last step before filing a case with a court. But there is one caveat – a new loan agreement will be made out for an amount that includes all penalties and accrued interest for delay. As a result, the amount taken on credit can increase by several times on the papers, and interest will be charged on it again.
Be sure to think whether you need consolidation in this case, the credit history is still damaged, and the court will record the debt, but the court decision itself can cancel a significant part of the fines and interest.

Mortgage loan consolidation

During the crisis, the issue of consolidation mortgage debt has become particularly acute. The solvency of citizens has decreased, and the size of mortgage payments make up a significant part of the budget of the borrower and his family. Banks are willing to meet mortgage borrowers, knowing that the crisis affects the financial capabilities of citizens. If you have a problem with the payment of mortgage debt, be sure to contact the bank. Remember that the property purchased under the contract is a pledge, it is in your interest to negotiate with the bank in order to avoid withdrawal of the pledge.

In practice, most often the amount of payments is simply changed, some kind of addition to the existing loan agreement can be made. But the contract itself will not be reissued. The fact is that when drafting a new contract, you will need to re-collect certificates and make an assessment of housing. Therefore, this method will be easier.

Consumer loan consolidation

This operation is carried out by banks most often. In this case, almost all credit products can be attributed to consumer loans: credit cards, special purpose and non-targeted cash loans, car loans and overdrafts. Most often, citizens turn to banks with such problem products.

This procedure is nothing complicated, and the banks willingly agree to it. In a crisis, when problem contracts are becoming more and more, consolidation of consumer loans is the only opportunity for banks to avoid distressed loan agreements. Most of the deals are exactly consumer loans.

What documents will be needed to consolidate the loan?

Ideally, the borrower must prove to the bank that he really got into a difficult financial situation and cannot make monthly payments in full. This can be any documents confirming your position. For example:
– sick leave (yours or loved ones);
– employment record with a note of dismissal / reduction;
– death certificate of a loved one;
– Recipes for expensive drugs needed by the borrower or his relatives;
– documents about the loss or damage of real estate.

In general, these can be any documents that directly or indirectly indicate that it is impossible at the given moment to make payments on a loan. If you have such a document, the chances of endorsing debt consolidation are greatly increased. But even if the application is not supported by any documents, it can still be considered with a positive outcome.

When visiting a bank, you will need to write an application for debt consolidation. The form of the established sample will be provided to you by a bank employee dealing with this issue. Or you can pre-fill the benefits of a general type. It is better to prepare two copies of the application: you will transfer one to the bank, and on the other a bank employee will mark the application for review. If you refuse, you can go to court by attaching your copy of the application.