One instead of several
Consolidation loans are one of the most popular banking products of recent years. Above all, the various offers tempt us to ultimately pay less for our commitments and, at the very least, pay only one financial institution for them. And this can be a comfort to you. Before deciding on a consolidation loan, it is worth checking whether the proposed offer is actually as interesting as the advertisements show us.
How does credit consolidation work?
A popular banking product in short is that we receive a combination of all our financial obligations from different banks into one credit and thus we will have only one instalment to pay. This is usually tailored to our capabilities, as we negotiate separately with the new bank and the number of installments and their amount. So in practice such a solution should be very profitable for us.
The adventure with the consolidation credit must begin, of course, with the fact that we present all our debts and documents confirming our creditworthiness. On this basis we receive information whether such an offer is suitable for us. It is worth remembering that consolidation credit is most often used by people who have problems with payment of successive installments, because they have either taken too many liabilities or their financial situation has changed. There could be a lot of reasons. The key to taking advantage of this offer is first of all the credibility confirmed by the history of BIK.
Consolidation for any period of time
The consolidation itself is beneficial for the client as it pays one installment instead of several. This even from the point of view of well-being is definitely a better way out. If the Bank agrees to consolidation, it will first of all impose one common interest rate on the loan, regardless of the amount of individual loans. The terms are of course individually negotiated and depend on many factors, but we cannot expect that this will be a much lower additional cost. In addition, the bank will offer us a longer repayment term because, in principle, it is a long-term product and, if we are to cope with the payment of many commitments in one package, then the number of instalments must be relatively greater. In this case, of course, much will depend on our creditworthiness, because it will be taken into account in the negotiations on the amount of credit and the duration of its repayment. In practice, it may turn out that we will not pay any less, but the commitment will be adapted to our actual capabilities.