Consolidation loan € 100,000 10 years High consolidation value over a long period of time. Or maybe a consolidation loan of € 100,000 with additional cash?
Credit consolidation is the repayment of various bank liabilities with the help of one, new loan. The consolidation loan helps in repayment of liabilities that we have in banks and at the same time has an impact on the borrower’s financial situation. Because it allows him to regain financial liquidity. This is caused by a change (decrease) in the amount of the loan installment.
It is a loan addressed to those borrowers who pay off several loans and credits at the same time, for example a home loan, a personal bank account and a credit card. In addition, we repay such loans at various dates.
It may happen that a large number of liabilities begins to weigh over the household budget and the first difficulties in settling liabilities arise. Then it is worth being interested in the consolidation of loans and credits.
How does a consolidation loan work? By taking a consolidation loan, the bank will sum up all our liabilities and then pay them off. And then we have only one loan – a consolidation loan.
Cash consolidation loans have been presented above. There are also mortgage consolidation loans.
It is a loan secured by a mortgage or one of the consolidated loans is a mortgage (housing loan). The cost of such a loan is significantly lower than the cash consolidation loan of the same amount.
An additional advantage of this solution is the fact that such a loan can be repaid even 30 years, and the cash loan is a maximum of 10 years.
Charging the household budget is much smaller with credit consolidation, because there is only one installment, usually much lower than the sum of installments of all liabilities repaid so far.
A consolidation loan is beneficial when we have a job and thus adequate credit protection. It is worth thinking about it because consolidation means that we have more money in the home budget.
However, whether the bank grants us a consolidation loan depends on the assessment of our creditworthiness.
And one more important note: it is necessary to compare several credit offers to choose a favorable solution. In the case of consolidation loans, it is a cheap loan. It is necessary to pay attention to the total cost of the loan and to check also in other banks how much the cost of consolidation of liabilities will be.