A consolidation loan is a form of financial assistance that allows you to obtain cash to pay off other liabilities. It combines all loans of a given customer into one granted on more favorable terms. It allows, among others for repayment of a cash loan, a house loan or a credit card overdraft. Sometimes, part of the funds can also be allocated to any chosen purpose.
Combine payday loans with us: fast and easy
To obtain a consolidation loan it is necessary to have payday loans. Anyone who has payday loans can apply for a payday loan consolidation. The idea of this solution is to combine all payday loans into one with a more favorable interest rate and lower monthly installments, which allows you to regain the financial liquidity of your home budget.
To receive a positive decision from a bank, you must first have a stable source of income and a positive credit history. Therefore, it is easiest to obtain this type of cash loans for people employed under an indefinite employment contract, whose earnings are at a level that allows regular repayment of the loan. On the other hand, positive credit history is a guarantee for the bank that a given person is a reliable customer who systematically repays his liabilities. In a situation wherein the credit history of a given customer there are often delayed repayments of liabilities, banks are reluctant to grant any loans.
Consolidation loan – types
There are two main types of consolidation loans: mortgage consolidation loan and cash consolidation loan. A mortgage consolidation loan is a solution that requires collateral in the form of a mortgage. It is awarded for high sums and a smaller percentage, and for a longer loan period. In turn, a cash consolidation loan is a type of loan that does not require collateral. However, it is granted for a shorter period of time and a lower amount than a mortgage consolidation loan.
Consolidation loan – a private company
An alternative to a consolidation loan in a bank is obtaining it in a private company that deals with this form of activity. The undoubted advantage of this solution is the fact that these companies often do not require the presentation of certificates. Thanks to this, with a minimum of formalities, the client can count on favorable conditions for a new commitment. So this is a great way to improve the liquidity of your home budget.