Help for payday loans – Can you consolidate payday loans?
Can you consolidate payday loans?
Loans can be consolidated, but you need to know exactly the conditions on which you incur new obligations in order not to fall into the debt loop. We at Payday Loan Helpers check when consolidation of payday loans is a good idea.
Credit calls for replacing several loans, one lighter with one convenient installment and receiving additional money. Likewise, Hot Bank and many other banks are tempting. All offer up to 200,000. zł. Only not all can afford to pay 2.5-3 thousand for ten years. PLN one monthly, theoretically attractive installment. Meteor Bank does not even hide that the Actual Annual Interest Rate can be up to 31.03 percent. and the condition for granting the loan is the repayment of the previous debt of at least 5,000. zł. There are also institutions such as Finance for You – a company offering rescue for those who specialize in “consolidation of payday loans, in granting cash loans, consolidation loans and loans for ZUS and US repayments”. There are also loan cost calculations on the banks’ websites, but they usually concern low amounts.
Loan consolidation better than the card
Difficult conditions do not always mean that loans are not worth consolidating. First of all, it is worth to get rid of excessive debt on credit cards, especially if I can not pay more than the minimum amount required by the bank. Unfortunately, not all banks have the limit on the card taken into account when transferring the debt.
If there are no such possibilities, and in the coming months it will not be, and the bank allows spreading the card debt into installments, it is worth using because the cards always have a much higher real interest rate than cash loans. If not, and you have other obligations, it is worth considering replacing them with one, lower installment.
In order for the loan consolidation to be profitable, it is necessary to calculate not only the cost of the consolidated loan but also the total amount to be paid. It is also worth considering additional possibilities proposed by the banks, eg the possibility of extending the loan period or early repayment of debt. Especially the latter is important because banks sometimes charge additional fees for this service.
You also need to consider insurance proposals. Thanks to them you can often pay a lower commission or the bank will offer a lower interest rate, but sometimes the premium fee, after all, will increase costs. So you have to pay attention to everything.
In Honty Bank, for example, with a loan of PLN 37 716 (without loan costs), PLN 64 340.40 will have to be paid back, and despite that. an interest rate of 8, 79 percent. it seems not very high, the total cost of the loan will be PLN 26,642.2. The bank will charge PLN 1 410.03 commission, PLN 17 650.43 interest, and PLN 7 563.74 insurance charges. It is worth being aware of such costs, even though the installment of 699.35 may seem rather short on the eye. However, you have to pay it for 92 months – over 7.5 years. It’s long.
Loan consolidation: pay attention to commissions
Banks generally boast low-interest rates on consolidation loans but less willingly talk about commissions that often determine the actual cost of the loan. In Credit, the interest rate on the loan per 100,000 PLN granted for five years is exceptionally attractive, as it amounts to only 5.99%. The problem, however, is that the commission is greater than anywhere else – it amounts to as much as 9.99 percent, which means that the cost of the loan will be high.
It is also worth to find out which loans are worth consolidating. Bankrate seems very flexible in this respect. You can collect one installment here: a loan or a cash loan, a consumer loan for the purchase of goods and services, a loan or a loan already held, a credit card, a limit in ROR, a car loan, and a loan or a mortgage. It sounds impressive, but the bank provides loans up to PLN 50,000. zł. People who have a mortgage and, for example, a car, have no chance for consolidation.
Loan consolidation: for a consolidation operation to be profitable, you need to calculate not only the cost of the consolidated loan but also the total amount to be paid.
In a bank, apart from a cash loan in another bank, a revolving loan or installment loan, you can also consolidate a credit on a card or credit cards. All you need to do is apply for a consolidation loan, which can be done online, by telephone or at the facility and wait for the credit decision to be notified by e-mail or telephone. You can get up to 180,000 PLN including credit costs. You can also, by consolidating lower indebtedness, eg. On credit cards get an additional loan of the same amount. This, however, costs 7.77 percent, but without commission, which is the same amount, so much. In such situations, it may be more profitable to spread the debt on credit cards for a more attractive interest rate on the installment. This service has more and more banks.
Credit Agricole allows you to consolidate loans from other banks and credit unions, installment loans, cash loans, car loans, as well as credit cards and loans in your personal account. You can get up to 250 thousand. PLN and the repayment can be spread even for ten years. You can also increase the loan amount if the application for granting it is made to your spouse or other co-borrower. But here you also have to pay attention to the commission. It can be up to a quarter of the loan amount, which can be seen only in the table of fees.
Loan consolidation: the calculator will help
The proposal to spread the debt for a longer period at lower installments, however, is often tempting. Especially when the financial situation becomes less reliable than it was when borrowing, for example, to buy an apartment You should take into account the fact that if the monthly load decreases, but the loan will pay off longer, its cost will increase significantly In Meteor Bank e.g. with a loan of 30,000 PLN taken for three years, will be repaid at PLN 968.5 per month, that is, the total amount of PLN 34.866 will be paid to the bank.
If you would like to pay lower installments and spread them out for 60 months, the installment will amount to less than PLN 615, but you will have to pay PLN 36.9 thousand. Each bank also has different conditions. For example, the debt of PLN 30,000 PLN for 36 months will mean repayment of PLN 1004 per month, for 60 months – PLN 655. The cost of the loan together with capital will amount to PLN 36,144 thousand, respectively. PLN 39.3 thousand zł. It will be even more expensive when you are indebted for a maximum number of years, i.e. ten. 30,000 PLN will cost an additional 18 thousand. PLN, because you will need to pay as much as 48 thousand. zł. So let’s use the calculators that are placed on the websites of individual banks and think about your situation and possibilities. Then ask your advisor for details very carefully to avoid unpleasant surprises.