Each financial decision is associated with high responsibility, and the consequence of signing the loan agreement is its timely repayment. Unfortunately, sometimes we forget about it, which results in piling up debt and financial problems.
It can also happen that one wrong decision brings with it a number of consequences, which can turn out to be a serious challenge for our portfolio. In such situations, a payday loan consolidation Help from PushButton comes in handy. What is this? How does it work? Let’s see!
Are you in need of some financial assistance? We’ve got good news – payday loan consolidation loans can help
Most of us approach every financial decision with great responsibility. We try to take them sensibly after analyzing all the pros and cons. In spite of this, in our lives, there are situations that are difficult to predict and their consequences are often problems with proper management of the household budget.
When we sign a loan agreement, we undertake to pay it back according to the agreed schedule. Usually, we make sure that we do not feel the significant additional burden, the required amount was not a problem for us. The trouble starts when unplanned expenses occur in the household. Repair of the washing machine, a new fridge, renovation of a flooded bathroom – these are examples of those needs that can not be postponed until later. It is difficult to function for a long time without efficient home appliances or bathroom. What to do in that case?
On the lips, words are saying that we should ask for help from our relatives. However, this is not always possible. When the situation seems to be out of the question, under stress we often decide to make another commitment to repay the previous one and cover current expenses.
The fastest availability is characterized by waiting time, which is why we reach for it most often. Despite many advantages, specialists advise against using a short-term loan to pay off an active loan. There is no denying that the problem will come back to us in the blink of an eye when the next obligation will come. It may happen that in desperation we will reach for the third, fourth time, and then the exit from the financial crisis will be more difficult. However, is there a good solution to this situation?
When looking for advice on how to get out of the problems with repayment of liabilities to financial institutions, the basic rule is to avoid taking further loans. However, let us remember that this rule applies primarily to loans with a short repayment date. If we are having problems meeting the obligations after the first 30 days, the chances of improvement in the next month are small. However, this is not impossible.
It may work, but only in certain situations, for example, when our financial situation is really good, and temporary indebtedness is the result of the accumulation of many unplanned expenses. The basis is the certainty that after the lending period we will have the necessary cash. If we do not have it, financial institutions propose a different solution. This is about consolidation.
In banking, it consists of combining two or more liabilities contracted into one. The terms of repayment of the new loan must be harmonized and adapted to our capabilities in such a way as to avoid further problems with the return of borrowed money. Therefore, the debt is spread over a longer period, and its settlement takes place in the form of equal monthly installments.
However, in order to get permission to use this solution in a bank, we must have an excellent history of liabilities in the databases and positively pass the process of creditworthiness analysis. A consolidation loan involves the combination of financial products active in other banks than the one we are currently asking for assistance. As you can see, combining payday loans into one via a bank is excluded. What are the possibilities?
According to BIK data, in the first half of 2018, as many as 77.4 thousand arrived in loan companies cooperating with the said institution. customers. You can see the dynamic development of this sector of the FinTech industry and the gradual increase in the popularity of the products proposed by FinTech. Since, therefore, a product being an alternative to loans has been proposed, there should also be a response to the needs of clients who are facing the repayment of several liabilities.
That’s how it happens. There are consolidation loans among loan companies’ offers. They operate on almost the same principles as a banking product. The only difference is the maximum possible loan period. In the case of non-bank offers, it can be one, two, three or four years. Finding a product with a longer deadline requires taking the time, and at the same time, we do not get a guarantee that the search will be successful.
How does a consolidation loan work? The reasoning process is the same as in the case of a standard offer. The difference is the first stage in which we will be asked to enter the amount needed and specify the amount we are able to pay to the lender’s account once a month.
Most often the loan period will be adapted to our capabilities. However, it also happens that it becomes fixed, unchanged, and the loan amount possible to obtain depends only on how much we can spend on its monthly installment. For example, if we decide to pay PLN 500 a month, multiply this value by the number of months, and then deduct the costs. As a result, we’ll find out what consolidation loan we can afford.
It is worth noting that some of the money will be transferred directly to the account of lenders with whom we have debt. However, still few companies decide to make consolidation products available. That is why it is worth knowing what to do if we do not find the right offer?
Loan on installments
As mentioned above, specialists advise against taking another payday to pay off the previous ones. When we have an ever-growing debt on the account and there are no funds to pay it, the installment loan may be the solution. It will enable us to replace several short-term liabilities with one with a longer lending period.
However, before making a final decision, we should carefully analyze your budget and whether we meet the conditions set by a given non-bank company. It is best to take the necessary steps before the repayment date of the remaining loans. Thanks to that we are sure that we do not have negative entries in the databases, which guarantees us a better chance of getting a positive credit decision.
How do you choose the right installment loan? We must pay attention to a few basic parameters. Among them is the aforementioned time in which we submit the application.
It’s worth taking care of avoiding additional costs and charging interest for late payment. It will also be necessary to adjust the number of monthly installments accordingly. We should analyze our finances and set an amount that we can easily spend each month on settling the debt. Next, one should determine the state of indebtedness and find an offer that would make this particular value available for installments falling within the previously set budget. If it is impossible in a given company, we should look further.
If you are looking for a good long-term loan, check out Aasa’s offer. You can receive up to PLN 10,000 with repayment in the form of 24 monthly installments. Familiarize yourself with the terms of financial support and submit an application!