The 27th edition of the InfoPlus report shows that in recent years the situation of debtors in Poland has not improved. The number of people with overdue liabilities is already 2,338,833, and the average debt reaches $ 17,300. What can people in debt do? Is taking another loan to pay off the previous one is a good solution? Most problems with repayment of liabilities related to consumer loans taken out for the purchase of a car or TV. Bank advertisements inform us that we can take a loan easily and quickly. No wonder that more and more people fall into the credit trap by taking more and more loans. If we have problems with repayment, and the liabilities incurred so far are too high for us, we should think about consolidation, i.e. combining these liabilities into one.
By spreading the repayment over a longer period, it is possible to reduce the monthly installment several times. The cost of such a loan is to extend its repayment over time and higher costs. It is very important to think about this before the problem occurs. This means that we have the greatest chances of consolidation when we repay loans on time, we have good collateral and we have creditworthiness. The consolidation of liabilities will make it easier to pay them back. The installments will be lower because they will be spread over a longer period. We do not have to remember different payment dates and sums of individual liabilities. In case of difficulties with repayment, we will contact one debt collection instead of a dozen or so. Debt consolidation can come from various banks, but I advise you to check out consolidationnow.com.
In addition, there may be other better conditions, such as more favorable interest rates. However, it should be remembered that the total cost of the loan consists of many elements. Therefore, the APRC should be compared, not the interest rate or installments. We wrote about what to consider when choosing a loan here. If we have problems paying back the debt , let us not act lightly.
Companies offering so-called private consolidation loans where the applicant’s credit history does not matter. Unfortunately, the conditions proposed by private investors are extremely unfavorable for debtors. The loan is usually secured by real estate which, as a result of non-compliance with the loan agreement, may reach the creditor.