Consolidation of payday loans -Request your payday loan consolidation today

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Request your payday loan consolidation today

The credit consolidation - simple principle with great effect

A loan is a popular way to overcome financial constraints and to finance larger purchases. A loan alone is usually easy to use. However, whenever several loans are to be serviced in parallel, it is not uncommon for there to be unnecessary additional costs and an occasionally even unmanageable network of payments due and lenders.

The financial burden grows every month, as does the risk of servicing individual repayments in the number of payment obligations. An effective solution to payday loans chaos seems to be the payday loan consolidation.

The principle behind a loan consolidation is basically simple, yet highly efficient. Because you want to pool a loan. This is how you merge several payment obligations from different loan contracts into a single contractual obligation. This means that only a monthly repayment rate is incurred and the financial burden incurred is noticeably reduced.

This purely theoretical principle can usually be put into practice without any problems. Above all, in the case of multiple loans taken out through the same lender, merging is possible with very little effort. This is often even recommended by the supervising bank in order to maintain the liquidity of the borrower and to reduce the organizational effort of the loan administration.

An overview of the advantages of a loan consolidation

An overview of the advantages of a loan consolidation

  • All existing loans are summarized in a new loan agreement.
  • Instead of many repayment installments, only a monthly installment has to be paid.
  • A lower interest rate is often possible through the combination.
  • The administrative burden of the monthly payment obligation is noticeably reduced.

However, it becomes more complex when the loans are taken out from different banks or lenders. In this case, a so-called debt rescheduling must be carried out before the total debt can be repaid using a single loan.

Debt restructuring or merging – what are the differences?

Debt restructuring or merging - what are the differences?

The terms debt restructuring and loan consolidation are often incorrectly put together by bank customers. There does not seem to be any relevant difference for the consumer, after all, both procedures combine several loan liabilities, which means that in the end, only an open total loan has to be paid.

A debt rescheduling is when:

  • Financial obligations are covered by debt from another loan.
  • The newly borrowed capital (credit) was not granted by the same lender.

However, there are striking differences between rescheduling one loan and merging multiple loans. These differences are easy to explain using the example of debt restructuring.