A consolidation loan is often a good solution for people with several debts whose repayment becomes a serious burden on the household budget. What exactly does he recommend it for? And who should decide on it?
The consolidation loan consists in combining several loans with one liability , with a joint installment and a single interest rate. How does it look in practice? Thanks to consolidation, you repay one debt instead of two, three or four, the installment is adjusted to your financial capacity and is usually lower than the sum of all installments of previous liabilities. The interest rate is also standardized, which is also lower. Why is this possible?The mechanism is very simple and is based on extending the loan period . You repay lower installments with a better interest rate, but in the longer term. Consequently, you pay more interest, which means that, as a last resort, a consolidation loan is more expensive. However, there are situations in which this solution is profitable. What?
The consolidation of loans is decided by people for whom the repayment of current loans is too high a burden on the household budget . Thanks to the lower installments, they are able to make timely payments to the bank account and thus maintain regularity in repaying their obligations. They also do not have to worry about forgetting one of the loans.
The only thing that matters is the consolidation of loans should be sought before major repayment problems begin. If the bank notices that you do not pay your debts, you can refuse the application.
Before presenting you the best in our opinion, offer consolidation loans, we’d like to point out that you can combine different types of debt, eg. Housing loans , cash loans , car loans , loans , and credit cards .A consolidation loan for persons transferring loans and other liabilities is available at PKO BankPolski. Importantly, you do not need to have an open savings account with PKO BP in order to be able to take out this loan. You can get a liability ranging from PLN 1,000 to PLN 120,000, and you pay nothing for early repayment, which is a very good solution. In addition, the bank offers “extra cash” for any purpose up to 25% of repaid debts.The Millenium bank also has a consolidation loan in its offer, which is additionally accompanied by insurance. Millenium guarantees the lowest interest rate , although what you should pay attention to is the amount of the APRC, ie the Real Annual Interest Rate, which also includes commissions, margins and other fees related to incurring debt.
A consolidation loan can be obtained up to PLN 150,000, and the loan term is up to 10 years. What distinguishes this offer is the low APY 9.37%. In addition, the payment of funds is often made one day after submitting the application.This is obviously not all offers that are available on the Polish banking market. If you want to know the terms of the other banks, you can use our comparator for consolidation loans . Thanks to her you will find a loan tailored to your needs.