Consolidation loans were once the exclusive domain of banks. The system worked quite efficiently until non-bank loans, commonly known as payday loans, began to dominate the market.
The problem, however, was that the banks did consolidate quite willingly, but bank loans. The client of loan companies was treated with distrust.
Fast payday advance consolidation completely online
The consolidation of payday loans in https://paydayloanconsolidation.net/ for many indebted seems to be the easiest way to break the tightening loop of payday loans. This may be the case when payday loans take the form of a low-cost loan in one installment.
Over time, the problem increased, and customers with non-bank loans more and more often encountered repayment problems. The banks either did not see – or did not want to see – the problem. Consolidation at the bank was basically out of the question (and still is not). On the one hand, it can be said that the system punished debtors who recklessly took high-interest loans. On the other hand, the road to cheap credit was closed to those who still had a chance to get out of the tightening credit loop. They needed the last chance they didn’t get.
There were entities on the market that saw this as their chance. Offers have appeared
Consolidation loan for debtors in credit unions
From the beginning, credit unions approached loans to customers of non-bank companies or indebted persons much more benign than banks. Especially when they had security. In the first period, you could say she was a completely free American. The loans were not only granted to people for whom it was the last resort. They also received people who could not be described otherwise than bankrupt. As it turned out, they received them for a reason. As a result, several prosecution proceedings ended this income-generating procedure for some. And the scale of irregularities in some SKOKs has been repeatedly described in the media.
Most importantly, however – the SKOK consolidation loan has not disappeared. He was reduced to civilized forms.
Today, in SKOK, a debt person can consolidate his debts, if only his situation has a positive prognosis. The so-called consolidation of payday loans in credit unions is the last chance for those in debt to avoid the consequences of the credit loop.
The consolidation loan at the Lendwise Credit Union is a good solution for people with non-bank loans. There are several advantages:
- It allows you to extend the payment of payday loans to too many installments (up to 120).
- The credit facility in SKOK is definitely lower than the payday loans.
- The amount of such credit allows for the consolidation of payday loans and other liabilities (up to $ 150,000)
For many years, credit unions in SKOK were and still is an affordable way to overcome the debt loop.
Consolidation loans outside the bank
Nature does not like a vacuum, and SKOKs at some point limited their lending (although in my opinion the term ‘dealing’ would be more appropriate). Therefore, loan consolidation offers from non-bank companies appeared.
Provident presented the first such offer, where a consolidation loan was officially proposed. However, it did not find a permanent place in the offer of this well-known loan company. Perhaps customers were not yet ready for such a product.
Unnamed consolidation of payday loans
At the same time, there were offers of increasingly larger loans for (increasingly indebted) Poles and Polish women. Loans larger and broken down into an increasing number of installments. Although no one called them consolidative, they were great for this role (and the debt was not too big). The highlight was the arrival of the Rabid Finance loan on the market. It was and is a unique product on our market. It allows you to get a loan even if someone BIK “shines” in red like an alarm signal. All thanks to the guarantor, who in fact takes responsibility for paying off the loan.
Is it worth it?
Calculations of the costs of extension or repayment after the payday delay are known to everyone. Especially because of their height. Let’s see how much the installment will be for a similar cat and loan period (credit in the case of credit unions), ie $ 25 thousand for 60 months.
The consolidation of payday loans in SKOK, as can be seen in the table, beats the competition without asking whether it hurts.
This order clearly shows in which institution they should apply for credit consolidation. The relationship is also obvious that the larger the debts, the higher the cost of getting a loan