Having debts is not always something bad. Many people take a loan but pay it back regularly, and still call it debt instead of a financial liability. Debts are just unpaid or unpaid financial liabilities. And we should avoid such debts. However, what if we suddenly got into a bad financial situation and we do not have the funds to pay back the loan?
Other financial products, such as loan repayment loan or consolidation loan, can help. However, you need to be careful not to make any further debts. If we regularly repay loans with other loans, we may fall into a debt loop, the only solution for which will be to declare a household bankruptcy.
When can a loan be paid for?
If we have several loans, including loans for installment purchases, cash loans or car loans, you can successfully get a loan for repayment of debt, which is professionally called a consolidation loan. However, here you must act before we even start having problems paying off your obligations.
This is not a loan for repayment of debts not paid on time or overdue, but the settlement of liabilities that are still paid on time, but due to financial problems we will stop paying them off soon.
The idea of this loan is to collect all active credit obligations into one new loan. Going to the bank, you can apply for a consolidation loan if you have at least two liabilities. The bank combines them into one and repays, and as part of the consolidation loan we repay the loan in installments to the bank.
The installments themselves are lower than all the combined monthly installments of previous loans. Such a procedure, however, extends the repayment time of a new loan compared to the time set for repayment in previous agreements.
In addition, you must have creditworthiness and creditworthiness to take it. This means that you cannot have lists for late payments or even debts of any title in the debtor databases, BIK or BR. Such a loan is used as a precautionary measure, before we run out of money to pay the installments. Despite this, it is popular because thanks to the lower monthly installment, it is easier to cope with its repayment.
Debt loan – how does it work?
Here, the case is completely different than with a consolidation loan. A loan for paying off debts can be taken even when you are in arrears with repayment of loan installments or payday loans. If you want to take out a loan to pay off your entire debt, you should sum them up first.
You can sometimes find specific loan offers, under which the lender repays debts for us, but most often the loan to repay liabilities is that we take a large amount, corresponding to the amount of our debts and pay them ourselves, and then repay the new loan installments.
Such loans usually take the form of long-term loans, to be repaid in the form of monthly installments. They are simply installment loans, which can amount to tens of thousands of zlotys depending on the loan company. Most lenders offer loans up to the amount of USD 20,000 without certificates and guarantees.
The repayment period is usually limited to 48 months. However, you can also find offers with a longer or shorter repayment period. However, it is worth paying attention to whether the installments are to be repaid monthly or weekly, because this form also happens quite often.
How to take such a loan? All you need to do is find a loan company that offers loans to pay off debts or long-term loans. Then, simply follow the procedure to submit an application, select the loan amount and its repayment time. Then you only need to provide personal data and financial data, including the amount of income and expenses. Separately, questions about taken loans and credits may arise or their installments should be entered in the expenses.
Some loan companies check the debtors’ bases and see for themselves the debts owned by the client, which is why they should not be hidden. However, the response to the application is always issued individually, which is why even people with large or old debts have a chance to get a loan.