Nowadays, we consume a lot of money, which means that our revenues may turn out to be insufficient in relation to our needs. Of course, you can try to minimize these needs, but life often forces us to even the right dress code that requires showing off at work in good quality clothes. Family and social obligations mean that we are forced to have a good-quality car and often travel it, and driven by ordinary economy, we decide to buy a house, which is more advantageous than renting it for years. Some costs of living simply can not be circumvented, at least not without losing the comfort we need. However, it is worth keeping your finger on the pulse and not spending more than is absolutely necessary.
Is it worth taking a break?
Waterpumps are a product of loan companies, which is based on easy accessibility and the necessity of fast and comprehensive repayment of debt. Waterpumps are not bad products, provided that they can use them. People who have frozen money in many different places and income on the account not once a month, but many times, sometimes take advantage of the time to quickly mend some urgent need. When the influence on your account appears in a few days – they immediately pay off the debt. Earlier repayment of non-banking products practically does not generate any interest for these people, except those insignificant. By operating in this way and taking care of early repayment of loans, you can take time out even very often, being a regular customer of non-bank companies, without prejudice to your finances.
Most clients of such companies, however, have people who have a knife at their throats – they need money immediately, for example to pay bills or to buy medicines that they can not finance with their income. For such people, early repayment of loans is often unrealistic. They delay the payment deadline itself, often exceeding the deadline, for example by a late payment or benefit. Interest is accrued to the debt, which is even harder to pay off and then the next minute comes in handy. For these consumers, there is only one way to get out of the payday loop – consolidation of payday loans. This is one larger loan covering the liabilities of all the others, which is spread out into more convenient installments, often with a lower interest rate.
Advantages of consolidation loan
By using the services of the company it is possible to consolidate payday loans for debtors by accumulating debts. How does it work? For example, for three loans taken out for € 100 in a non-bank company, their interest rates are: 2%, 3% and 5% (of course, these are fictitious values). A debt loan allows you to pay back € 300 of debt, along with interest earned, which at the moment amounted to, for example, € 30. Therefore, the customer has to pay 320 euros to the bank, which granted him a consolidation loan, but negotiated the distribution of debt for three installments of € 110 each. He was able to negotiate an interest rate of 7% on this loan, which is lower than the sum of interest on individual loans! Obtaining a consolidation loan at the bank is a somewhat complicated procedure requiring knowledge of the subject and preparation of a full set of loan documents. However, repayment of payday loans by this banking product is much easier and financially more advantageous.
Are there any disadvantages of this solution?
It is not a good solution for every consolidation loan. It all depends on how well we can negotiate and what specific commitments we have. Consolidation of loans in a bank usually requires a great credit history, because it is a banking product like any other and is supposed to give the bank earnings. Not everyone can take advantage of this solution from the bank. You can, however, try to use the services of companies that deal with debt relief. The procedures for obtaining debt consolidation are usually less complicated here, sometimes they do not even require leaving home, because the contract for such a loan is imported by courier and signed at a distance.
People who want to get out of the debt loop should therefore sit back and calmly think about the available solutions. They should think about a consolidation loan that will help free the spectrum of many different debts. However, first of all, they must learn to spend all their money wisely and, moreover, pay close attention to the profitability of all financial activities.