No need to convince anyone that credit offers are very tempting. For relatively small amounts of monthly installments, we have a chance here and now to make our dreams come true – about renovation, a new TV set, a trip to a selected corner of the world, a sumptuous family party, etc.
At some point, however, having a large amount of credit obligations becomes embarrassing, as many different repayment dates, with the amount of individual installments, etc. The solution to all these inconveniences may be the use of the consolidation loan offer.
Consolidation of liabilities
The exchange of several loans for one is nothing new. Initially, the consolidated liabilities had to include a mortgage-backed loan – this was the form of collateral for the consolidation loan. For some time, banks have also allowed us to consolidate liabilities that are not secured by a mortgage.
Among such loans, we were looking for the best offer for a client who wants to take a 50,000 USD consolidation loan. Our client wants to repay this amount in 60 equal installments (i.e. for a period of 5 years), and the offer itself should be available to everyone – including those previously unrelated to a given bank.
Turn your old expensive loans into a new one!
Bank Good Finance turned out to be the undisputed winner of the consolidation loan ranking! This bank offers a loan with a low monthly installment from USD 1,018, which makes an impressive impression at real interest rates below 11%. How it’s possible? Well, the interest rate is from 7.99%, and the commission rate is 5%. The total amount to be paid by the consumer, in this case, is less than USD 61,000 (including USD 50,000 of credit).
The comparison of the best consolidation loan offer offered by Bank Good Finance with the last two offers classified in our ranking makes us very clear about the discrepancies in the price of individual offers.
Imagine that the difference in the monthly installment, compared to the least favorable proposals from Bank Good Finance and Good Credit Bank, is close to USD 300 per month, which in terms of the entire 5-year repayment period will save us nearly USD 20,000!
Let’s send our old loans for a well-deserved rest!
The new loan consolidating the loans held so far has almost no weak points. It allows us to adjust the burden of credit servicing to our current situation – by the possibility of spreading repayment over a long period or, on the contrary, it allows us to merge liabilities into one and thus discipline us more into earlier repayment without having to incur interest on the loan.
Importantly, to consolidate our old loans we do not need to establish additional repayment collateral such as a mortgage on real estate (of course it is also possible, thanks to which our loan would be cheaper, but it would greatly extend the process of receiving funds) – the whole procedure of granting this type The loan usually ends during one visit to a bank outlet!
As we send our old loans for a well-deserved rest, we can think about the option of using additional extra cash, i.e. taking more than the sum of consolidated liabilities – then we may be able to rest a bit – usually, because the new installment will still be lower than all others separately. And this is the biggest charm of a consolidation loan!