Paying off payday loans debt consolidation -I need to consolidate payday loans

Consolidation loans – comparison of BANKS and consolidation loans. Is it profitable to take a consolidation loan when we pay off several loans and have several loan installments every month?

In particular, those who pay off a few loans may consider consolidation, and loan installments are too burdensome for the household budget. Experts point out that thanks to consolidation we are able to reduce the installment amount, but not the cost of the loan. Well, when it pays to take a consolidation loan and pay a smaller installment?

I need to consolidate my payday loans now


A payday loan consolidation is offered by 

What is the purpose of payday loan consolidation?

The consolidation loan is used to repay loan and loan liabilities taken out by banks. If we have already compared the banks and selected the one, it allows the repayment of several existing loans, in return offering only one loan that allows you to pay off these liabilities (we often talk about ” combining loans into one “).

What can a consolidation loan be allocated for? It is most often used to repay cash loans, installment loans, housing and car loans, as well as to pay back debts on credit and debit cards on bank accounts.

As in the case of other credit products, it is also necessary to have sufficient creditworthiness in this case. The bank will also check our creditworthiness.

It may turn out that we will not have credit worthiness. What then? It is necessary to renegotiate individual loan and loan agreements. For this purpose, please contact the banks in which we have commitments.

Is it profitable to take a consolidation loan? Two types of consolidation loans

Is it profitable to take a consolidation loan? Two types of consolidation loans

We distinguish two types of consolidation loans. It is a cash and mortgage consolidation loan.

We use a mortgage consolidation loan when one of the consolidated debts is a mortgage (housing loan) or the mortgage is secured by real estate mortgage. A cash consolidation loan is more common and no property is required. In this case, you can consolidate up to 5,000. € 150,000. In the case of high consolidation amounts, a mortgage consolidation loan turns out to be a cheaper solution.

Let us remember that the prerequisite for the profitability of consolidation is finding a bank that can offer us the lowest real interest rate (APR), that is to say, a bank with the smallest total cost of the loan should be selected.

Why are the installments decreasing during consolidation?

Why are the installments decreasing during consolidation?

This is not a magic trick or a charitable bank approach. A consolidation loan is usually more advantageously interest-bearing than a cash loan and is granted for a longer period of time. Extending the repayment period means that the loan installment is smaller. And here comes a minus, which is the consequence of extending the loan repayment time. We should be aware that the sum we will give to the bank will increase in relation to that which we would pay back in a shorter repayment period, without consolidation. This will be affected by a larger amount of interest on the loan – we repay it over a longer period of time. And there are also additional fees for granting the loan (eg commission).

When deciding on consolidation, we should consider whether such a solution will be “worth it”. In answering the question whether it is profitable to take a consolidation loan, we must take into account several aspects.

Let’s think about it. It is better to bother a few (a dozen) years with high installments or can you take action to regain financial liquidity? And take advantage of the opportunities offered by the consolidation loan? The decision belongs only to you. It is necessary to analyze each offer carefully and think about the best solution.

Avoid payment closures because ceasing to pay installments can have serious consequences. In this case, it is likely that we will not consolidate in any bank, nor will we get even the smallest cash loan.

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