For a relatively long time of our activity on the credit market, we have noticed that clients interested in consolidation loans can be divided into 2 simple groups.
The first is customers with quite a few smaller loans. They are particularly interested in a smaller installment, convenience of paying. They exchange smaller credit cards, loans, revolving loans for one consolidation loan.
In the second variant, there are clients with 2-3 larger cash or consolidation loans. In their case, it is more about choosing cash, despite problems with lack of capacity, and optimizing the repayment of your liabilities. Typically, this group of customers has loans higher than PLN 25,000, each with a large balance to be repaid. The activity is not limited to consolidation and cash matching on better terms, but also includes reimbursement of insurance costs from closed loans. In this way, customers significantly reduce their total loan installment.
Chance to consolidate expensive liabilities into one cheaper loan
Loans repaid by clients seeking consolidation are usually repaid for about 2 years. Considering that they were obtained for periods of 6 to 10 years, this is only a smaller part of the total amount to be repaid. A large installment, burdened with additional costs, encourages customers to try to transfer their liabilities to the bank, which will propose better conditions. The most important factor that allows you to obtain a cheaper liability is the interest rate on the loan. If customers exchange their loans from 9.99 per annum for 5 or 6%, their installment is definitely lower. One large loan with a low interest rate, spread over 12 years, will certainly be a good solution.
Tracking bank offers is important in this matter. Good advisers are able to negotiate the best conditions for the client. They also follow promotional offers of banks. Each month, a different bank tries to tempt as many customers as possible with attractive interest rates.
Large bank loans, consolidation
Consolidation of large bank loans has its strengths and weaknesses. Certainly, its good points prevail. It is worth knowing, however, that there is also a minus.
Advantages of large loan consolidation:
One installment, less time spent on monthly transfers.
One bank to which we repay our debt, simpler contact in case of difficulties with repayment.
Lower bank commission than on many smaller loans.
No additional insurance costs.
One bank loan instead of several different products such as credit cards, cash loans and limits.
Disadvantages of consolidating large loans:
The client bears the cost of a bank commission during consolidation
Large loans outside of the bank, consolidation
If you want to consolidate several non-bank loans, you can repeat the above argumentation in one bank loan. Similarly, we turn many obligations into one, which brings certain benefits. The disadvantage mentioned in bank loans is less noticeable here. This is because, despite incurring a bank commission, the consolidation of loans allows you to get a refund from non-banking companies.