Looking for payday debt consolidation?
Do you want to pay back one loan instead of several? You have sent the application and are waiting for a phone call from a bank adviser because you want to take a consolidation loan? What will you choose The bank who will call back first? A bank that will tempt you with a lower interest rate, or a bank that will not require a pile of documents from you? We advise you to view consolidationnow.com/ and choose the best payday loan consolidation.
Before you choose a specific consolidation loan, you should compare its parameters.
The total cost of the loan
This is one of the most important parameters of every loan (including consolidation). Why is it so important? It means all costs that you will incur in the loan, including interest, fees, commissions and costs of additional services if it is necessary to obtain the loan.
When comparing, for example, two consolidation loans, you should not limit yourself to interest – it is only one of the parameters. It may be that a consolidation loan with a higher interest rate will be cheaper than a lower interest rate (a higher commission may be charged for granting a loan with a lower interest rate).
It may be mandatory at some banks. In others – optional. When comparing insurance, first of all check their cost and how the premium is paid – whether one-off (it can then increase the loan amount) or monthly, together with the installment.
also check when you can take advantage of insurance (e.g. after losing your job or getting sick), and whether you decide to get insurance on better terms (e.g. with a lower interest rate or a lower commission for granting).
If the bank offers a loan with and without insurance – compare the options and check which one is cheaper and better for you.
Process and required documents
Check what documents you will need to provide to the bank. For example – one bank is enough for an employment certificate issued by your employer, another will require a certificate on your print.
The bank may also require an account statement – printed on an adviser’s computer (and you probably would not want to log into online banking on unfamiliar equipment?). Also compare the time during which the loan application will be considered and the decision to grant it taken.
Consolidation loan promotions
One bank offered you a consolidation loan on standard terms, another on promotional. Check what you need to do to take advantage of the promotion (whether, for example, you will not be required to set up a personal account, set up a credit card or take out insurance).
Also check whether any costs you would have to incur in connection with the use of the promotion will not make credit on promotional terms more profitable for you.
Consolidation loans – why check the APRC?
When choosing a consolidation loan, pay attention to the APRC, which includes all additional fees, including commission, preparation fee and insurance.
It may turn out that the loan with an interest rate of 0 percent. will have 12 percent APRC – these additional costs increase them, to which we often do not even pay attention. To calculate the total cost of a cash loan, you can use the free tool, which is the APRC calculator.
Always ask for the total amount to be repaid – you will find out how much a given consolidation loan will actually cost you. You should follow one very important rule: the lower the APRC, the more favorable the loan.
How to lower the interest rate on a consolidation loan?
The advantage of buying insurance through a bank is that it will take care of all the formalities. In addition, the use of insurance may affect the amount of commission or interest rate.
However, before you decide on insurance, compare the total cost of the loan with and without insurance and check which version will be better for you. Take into account that insurance is an added value, not just a cost.
Also check whether the bank will lower the loan interest rate if you decide to set up a personal account there. If this bill is free, take it into account. However, if the bank charges fees for maintaining a personal account, then calculate how much you will pay for them during the entire repayment period.