If I had known how much fast loans would cost me, I would never have used them… would this sad thought come to your head? It is said that expressing a wish is never helpful in solving problems, and we, Good Finance, fully agree with that statement.
It is much better to calmly reflect on your situation and find the optimal solution. If fast loans have created gaps in your budget, you can help with fast credit re-crediting – a special borrowing option. Read our new article and find out what loan consolidation options borrowers can use!
So easy to consolidate your debts
As we have already written on kokteilis.la.lv, loan consolidation is a new loan, but pay attention – it is not a regular loan, but a special loan repayment. You may be wondering here – but can it do so? Creditors do not cease to stress that we must not borrow to cover other debt, and we certainly join in this call, but credit consolidation is different from ordinary consumer credit.
When applying for credit consolidation, the borrower shall inform the creditor of existing credit obligations, arrears and debts. Using this information, the lender makes a decision about granting the loan, the amount of the credit limit and the credit terms. Compared with ordinary loans, the benefits of a re-credit are obvious:
- longer repayment term;
- lower interest rate than consumer loans;
- one monthly payment date.
Do you now understand why debt consolidation is one of the best ways to get rid of debts? Instead of rushing to find money with relatives and friends or trying to sell things that you would love to use yourself, you can apply for a debt consolidation and pay off all your creditors in one day!
And now let’s talk about what credit consolidation options are available to borrowers. We can immediately whisper in front – the better your situation, the more favorable conditions you can hope for!
Objective: to deal with debt
If you have accumulated several quick loans, you know that repaying them can become difficult very quickly. It is enough to miss one payment date and the debts are no longer behind the mountains. This is because the fast credit industry is structured very tightly and borrowing conditions do not provide for sudden illness, job loss or any other abnormal situation.
Even if the total repayment of the loan proves to be too high for the borrower’s monthly budget, the terms of the credit agreement must be followed. But what if this is not possible? Here are four options for action.
4 ways to get rid of the burden of fast credit
1. Agreement with the creditor
The first thing you can do to resolve a difficult financial situation is to contact a lender. In some cases, this is mandatory, for example, if you clearly know that you will not be able to make the payment or if you are past the due date. The sooner you inform the lender of the difficulties, the sooner it will offer a solution. Such an approach may be effective, but has several limitations:
- most likely, the lender will offer you a fee to extend the loan, which will only increase the overall cost of the loan;
- debtors have very little chance of receiving a friendly payment restructuring proposal;
- the arrangement with each creditor takes time and does not guarantee a successful outcome.
2. Monthly budget review
If borrowers are able to agree with the lender on a change in the payment schedule, repayment of fast loans should become a key part of the monthly budget. To find the missing money, you can:
- Abandonment of pre-planned spending, such as travel
- start a tight economy with just important payments and save on minor daily expenses like food or hobbies.
3. Sale of property
If the income level is too low for the savings to help you get the amount you need, your property can become a source of money. Quick loans can be repaid by selling:
- Electronics: Smartphone, Tablet, Laptop, etc .;
While theoretically a relatively large amount can be gained by selling valuable assets, we do not recommend relying on this strategy. Finding a buyer is not that easy and the buyer will probably want to pay less than you need. Trying to make money to pay off your loans and debts on your own, or getting stressed out and wasting time on futile efforts. But there is another, fourth option – credit consolidation . What it is and why it is worth using in a difficult situation is described below!
3 credit consolidation options
Loan restructuring without collateral
The most convenient and borrower-friendly option is to combine loans without collateral and pledge. The following service is available to borrowers:
- with a positive credit history;
- without active debts;
- with official and verifiable income.
Our advice is to start looking for credit consolidation, not when you are already in debt, but as soon as repayment begins to prove difficult. The sooner you apply for a re-credit, the more profitable you will get. But if the situation is far from perfect, take the opportunity to refinance loans against collateral.
Combining loans with a bad credit history is almost always available only as collateral. Usually this is the only solution for debtors, although we cannot guarantee 100% that a debt automatically implies a collateral. Everything depends on the nuances of your situation, including:
- total amount of debt;
- Your solvency and credit history.
When reviewing your re-credit application, the lender will evaluate the credit risks and offer re-credit with or without collateral. However, if the refinancing of the loans will still require a pledge, it will take a bit more to complete the contract, as it will be necessary to evaluate the pledge and prepare all the documents.
Credit can be obtained by individuals whose monthly income is high enough to make credit payments – the same is true when it comes to combining loans. However, there may be times when credit consolidation is required for an officially inactive person. What to do and where to go for help?
Combining loans without a job
If a person does not have a job but has several loans, this means that he / she still has some monthly income. The borrower may be:
- informal worker;
- real estate lessor.
If you can enroll yourself in one of these categories, credit re-credits will most likely be available against collateral. The mentioned sources of income are considered too small or unstable to grant loan refinancing without additional safeguards.
Whether you need credit consolidation with or without a pledge, we can help you find a friendly deal quickly. Don’t forget to read the concluding article to learn about the benefits of Good Finance!
Looking for TOP credit consolidation options with us!
Our portal aims to help users find the best deal on their borrowing , and credit re-crediting is no exception. We’ve put together the best lenders’ offers to make online credit consolidation easy and understandable. Here’s what you’ll get with our comparison platform:
- a complete list of non-bank lenders;
- a detailed comparison table;
- credit merger reviews.
Combining loans with Honest Bank and other recognized banks is just one of many options. Don’t hesitate to apply for the first offer on the Internet, first find out what credit re-crediting options are available elsewhere. Use Good Finance and borrow wisely!