Definition and principle of payday loan consolidation
payday loan consolidation is a solution that cleanly cleans up your financial situation. As its name indicates, it is a question of regrouping your loans so as to have no more to honor only one and only debt. Who is the grouping of loan for, what can you group together and what steps should you take? All the answers in our article.
payday loan consolidation and loan redemption, which report?
The term loan aggregation is sometimes used to refer to a repurchase of loan . However, we must make a distinction. A repurchase of loan is an isolated operation that consists of renegotiating the terms of a loan. In a grouping, a set of loans will be renegotiated. You benefit from a rate cut for all your current loans. Incidentally, you can also benefit from additional time to repay the new loan.
What are the consequences of a payday loan consolidation?
The payday loan consolidation has the effect of significantly reducing your debt ratio. Indeed, with 3 or 4 loans, the budget devoted to the repayment is quite consistent whereas with a single loan, you will have more than a global monthly payment. The grouping will significantly reduce your expenses related to the repayment of your debts. For example, you spend € 400 on monthly payments for only € 250.
Who is the loan pooling for?
The payday loan consolidation is for those who accumulate two or more loans, the idea being to group them in a single loan agreement. It is especially the poorly indebted people who are the first targets, that is to say those whose debt ratio is close to the tolerable threshold. Remember that the legal threshold is set at 33%, one third of your income. This threshold reached or exceeded, you are considered over-indebted.
However, do not wait to reach the threshold to decide on a grouping. Your debt ratio also conditions the decision of loan institutions to grant you a payday loan consolidation. Grouping is mainly a way to avoid over-indebtedness, not to solve it.
What loans can you group?
You can group all your loans, real estate loan as consumer loan. It is the proportion of the type of loan that defines the type of grouping. When the amount of real estate outstanding is greater than 60%, it is called consolidation of real estate loan. Otherwise, it is a consolidation of consumer loan.
Thanks to a group of loan, your debt ratio can allow you to consider new projects, real estate acquisition, vehicle purchase. It is quite possible to include this new project in the loan pool to enjoy the same conditions.
How to achieve a payday loan consolidation?
payday loan consolidation is a complex operation and not all banks accept it. It is sometimes useful to use an intermediary, a broker to buy loan to find you the best offers and to advise you on the steps to take with the institutions concerned.