With the proliferation of various types of credit, the problem arose - the over-indebtedness of households. These were accumulating various credits and, with the financial crisis, began to have serious difficulties in supporting their regular expenses plus those they had with their credits. Thus, consolidated credit emerged, a solution that allows all credits to be combined into one, thus simplifying and easing family budget management. This solution can be granted to any type of person but is primarily intended for individuals with multiple loans.
Request a payday loan consolidation today
Instead of having several monthly installments to pay for various credits, you have only one installment. This new credit, which aggregates all its other credits, will have its own negotiation, defining new payment terms and new interest rates (which are expected to be lower). The consolidation process then consists of aggregating the total amount owed to the various financial institutions in a single contract.
In Portugal, this type of credit can be divided into two distinct categories: the consolidated mortgage with a property and the consolidated mortgage without property. The big difference between the two is that in the first you can give the property as collateral, which will guarantee you longer repayment terms, repaying the rate to mortgage rates (30 years, as a rule).
Through DeDebt Free, you should already be able to see good reasons to consolidate your payday loans. While the most attractive factor is the savings you can make each month, there are other good reasons for choosing a payday loan consolidation. Go through the list below and see if these reasons meet your own funding needs.
Significantly reduce monthly loan repayments
By using consolidated credit, you will be able to reduce the monthly amount you paid for all installments of your credits. In total, you can achieve monthly savings of up to 60%, resulting in a considerable monthly financial slack and can save you money for other purposes. Thus, by combining all credits into one loan, you will be able to repay the installment which is much lower than the sum of all installments you are currently paying for all credits.
Payment term increase
By pooling all your credits in one, you will be given the opportunity to repay your loans more smoothly, as we saw in the first point, and for a longer period of time. That is, you will be given a longer time to repay your credits. The deadline is a single deadline, common to all credits included in the consolidation, meaning you only have one deadline to meet. Ultimately, you will pay smaller monthly installments over a longer period of time.
Interest rate reduction
As a rule, interest rates on consolidated loans are lower than average interest rates on all other loans, or even lower if you already have a home loan and want to take advantage of your mortgage. By consolidating your credits, you are given the opportunity to negotiate a lower interest rate as it is agreed again for the creation of the new single credit.
Increased purchasing power
With a reduction of about 60% in the monthly installments of your loans, it is obvious that you have greater purchasing power and can apply for the money in another way. In addition, you get a greater sense of comfort, not suffering so much from the family budget management, which thus gains a greater breadth.
There is only one lender
All the bureaucracies you have to deal with about your credit are now in charge of just one lender, which makes credit management a lot easier, without having to call or move to different companies. In addition, you can choose which institution you want to have by your side for this process.
No bank change required
During the credit consolidation process, there is no need to change banks. To create this credit, you can usually keep all your business with the bank where you are already a customer.
Have access to more funding
If you need more funding, be aware that with a consolidated credit this becomes easier. However, you need to be aware that the drastic reduction in your monthly installment may be compromised by this decision as you are taking out an additional loan.
Everything becomes simpler
Unifying the payment of all benefits in one is in itself one of the great reasons for joining this scheme since everything is simpler to manage. By eliminating the various installments that are paid on different dates, at different rates, and in different banks, you will be able to simplify the construction of your monthly household budget, avoiding, for example, possible late payments and consequent commissions and interest for late payments. By pooling the credits all in one, you are concentrating your repayments on one date, which makes controlling your bank account much easier. At the bottom, with consolidated credit, you gain greater control over your finances.
Ask now for a simulation for your personal consolidated credit and learn about the advantages of this type of credit for your particular case.