Consolidation loans are financial products that are intended for the repayment of previous debts. Therefore, if someone has at least a few installments of various loans or other financial liabilities to repay, and the sum of all fees becomes dangerously high, it is worth considering the possibility of consolidating them into one indebtedness.
When prolonging the repayment period, in the case of banks up to a maximum of 10 years , the monthly installment is reduced by several dozen percent. In addition, the other branches cease to charge us with various penalty interest for late payment. And for that we exchange them for quite reasonable interest on a consolidation loan of around 4-6% . To find the best consolidation loans , it’s worth paying attention to some important details. First of all, we should be interested in the lowest real interest rate, that is RRSO .
This is the sum of all fees associated with taking a loan. In addition, it is worth getting acquainted with the maximum loan period as well as the maximum amount we can take out. Because some people need several hundred thousand zlotys to repay all their debts.
And not all banks with a low real interest rate are able to provide such high loans. In addition, it is very helpful to suspend loan repayment if you do not have enough income. Or, be able to repay the debt early and get rid of any financial obligations.
The best consolidation loan gives you the biggest savings when you only pay a monthly installment for your debts. Such an offer should be expected and special attention should be paid to additional products and their costs.