Loan consolidation is a merger of loans, credit cards, overdrafts, and sometimes leasing into a single installment. Consolidation can help you when you have borrowed more money and find yourself in a difficult situation. You will get rid of unnecessary fees for keeping accounts for loans, interest, etc.
Consider consolidation when you have a high installment cost and you don’t have the money for basic needs like food, medicine or rent. You can’t count money on hobbies, cigarettes or alcohol, etc. Calculate repayments on a new loan, if lower, decide on the best loan consolidation. It is also advisable to consider consolidation if you were able to save a financial reserve thanks to lower installments.
Most advantageous consolidation of loans
The most advantageous consolidation of loans is offered by both banks and non-banks. While the bank can use consolidation up to CZK 300,000 and a number of loans, receipts, and non-bank companies need to document loan agreements and an agreement with creditors on early repayment of loans. Non-banking companies do not solve registers or income. If you’re interested in really high amounts, it’s easy to use a loan with a property pledge that is not tied to the purpose of use, and in this case, often neither distraint nor no or low income. Both types of lenders have one thing in common – they will not lend you if you do not repay the existing debt. You can calculate the most advantageous consolidation on calculators created for this purpose. Just enter a few details of the loan and you’ll know the result right away. Consolidation can be requested online or in person at a branch. An online deal has the advantage of not having to go anywhere. You can send all the necessary documents by email. Any person over 18 with any income can apply for it.
Consolidation is not appropriate if you do not pay properly, the new loan will be much more expensive than all your loans together. Banks can also evaluate the client as risky and the APR will be set too high. In that case, a classic loan is often cheaper. If you want consolidation to get out of bigger debts, it is easiest to get your installment schedule first. When this is not possible and you owe the installment for more than three months, consider insolvency. You also do not pay if the lender charges early repayment fees and would be disadvantageous.
The most advantageous consolidation is a loan with low installments, no registry, proof of income. In addition, for many companies, you can borrow money above, so you can use another loan for your own needs. If you are not sure about choosing a product, use the online calculators. They are non-binding, free and you know the result immediately. It is often not possible to apply for consolidation in a bank where you have a loan or credit card and you must go to the competition.