A consolidation loan is an extremely useful banking product that allows you to regain control over financial liabilities. Often, this is the only way to regain liquidity and go straight. Unfortunately, banks grant consolidation loans only as part of liabilities taken from other banks and do not include loans from non-bank companies. Is it possible to consolidate payday loans in a different way?
We combine payday loans into one
The financial product in the form of a payday loan consolidation is addressed to people who have several payday loans at different banks. With this payday loan consolidation it is possible to combine these payday loans into one. The bank repays our debt and offers us a longer repayment period for new, larger debt. The monthly installment is also clearly reduced. It is therefore quite a good way to regain financial liquidity. As we mentioned, a consolidation loan can only be taken for liabilities at other banks.
Cash loan at the bank to pay off the debt
It is worth consulting with our bank's financial advisor and asking about the possibility of taking out a loan to pay off liabilities. If our creditworthiness allows it, the bank will lend us money for which we can pay back the consolidation of payday loans. Then we pay off larger liabilities at the bank, and the monthly installment is less severe. Of course, we have to reckon with the fact that the total cost of financing will be higher due to the longer repayment period.
Non-bank loan for those in debt
Another solution is to take a larger cash loan in a parabank and use the funds to pay payday loans. Here, too, we will get the effect of a lower installment and a longer repayment period. The APRC indicator is an extremely important factor here, which should not be too high. It may turn out that the non-bank loan will be extremely unprofitable and although thanks to it we will repay current debts, in the end, we will be exposed to very high costs. We also need to be sure that we can pay off the monthly installment of the loan.