Guaranteed debt consolidation loan -Learn how to consolidate your debt into one
Learn how to consolidate your debt into one
dedebt.com suggests debt consolidation. If you apply for it and you have, for example, a loan, credit card debt and a new installment phone, you can combine everything under one umbrella loan.
Your new lender will pay everything for you and you only owe him. You can also adjust the monthly installments and the repayment duration. The advantage is that only one repayment term applies to you . But the seemingly flawless solution also has its drawbacks:
High penalties for early repayment
Some lenders charge high penalties for early repayment . A consolidated loan can cost you more than paying off each debt separately. The situation is better for people who took out consumer credit after 1 January 2011. The law then stipulated that the early repayment fee may not exceed 1% of the debt if you have more than a year left. In other cases it shall not exceed 0,5%.
Consolidation tends to be charged as a percentage of the total amount owed and other fees are no exception.
While some non-banking institutions offer consolidation, your debts only sell to the bank and collect a heavy fee. They only work like dear middlemen. So in the case of consolidation , more than anywhere else, you have to read, calculate and rethink everything properly. It is not for nothing that she is referred to as a small test of financial literacy .
10 questions about consolidation
Answer each of the YES / NO questions and test if you understand everything about consolidation.
- Will a new lender pay you all the debts when consolidating?
- Will consolidation pay off to anyone who has more than 2 loans?
- Do all providers consolidate the same products?
- Can leasing be consolidated?
- E exists maximum number of debts that can be consolidated?
- Will consolidation solve the inability to pay off debts?
- Is consolidation suitable for people who have difficulty keeping an eye on due dates?
- Is consolidation more advantageous if you took a consumer loan after 01/01/2011?
- Can you reduce your monthly payments through consolidation?
- Will consolidation pay off if you want to pay off your debt faster?
- YES. After debt consolidation, you owe only one creditor.
- NO. It depends, inter alia, on whether previous creditors charge earlier repayments.
- NO. Some do not consolidate overdrafts, others do not loans from non-banking institutions, etc.
- YES. But only with some providers.
- NO. We have also merged 8 debts.
- NO. In some cases, the debt may even increase.
- YES. However, other factors should be taken into account when thinking about consolidation.
- YES. On this day, the law on early repayment fees was amended.
- YES. Usually, however, this means extending the total repayment period and thus paying more.
- YES. You can set a new monthly payment amount.