Where is it best to consolidate loans and why? A consolidation loan is a loan to repay not only expensive loans: cash, car, installment, mortgage loans taken a long time ago. Credit consolidation also makes it possible to lower the loan installment.
How is the loan installment reduced? Banks may use one of the following solutions.
1) The first is the extension of the loan period
- installment reduction,
- greater total cost – more interest on the loan.
2) The second solution is to use a lower interest rate.
The interest on the consolidation loan is lower than in the case of loans and borrowings previously repaid.
3) A type of consolidation loan is also a mortgage consolidation loan.
It is a loan secured by a mortgage: one of the loans being secured is a housing loan (mortgage) or a real estate security. Such a loan can be repaid even for 20-25 years.
A property with a mortgage consolidation loan does not have to belong to the borrower.
In the absence of real estate, you can use a cash consolidation loan . And this is the most popular consolidation loan. The maximum lending period is 10 years, and the maximum amount of consolidation does not exceed € 150,000. Although there are consolidation offers up to € 200,000, but no more.
Where to best consolidate loans. Cheap consolidation loan
In addition, you should look for a loan with the lowest total costs. It is difficult to find an offer without having to pay the loan commission again, but comparing the consolidation loans will make it possible to find a more advantageous offer. If you do not need additional cash, do not use this option: there will be a larger installment and, consequently, an even more expensive loan. Consolidation, after all, has to help in regaining financial liquidity, not even deepening the commitment.
The most common are cash loans and loans, installment loans, car loans, credit cards and bank loans as well as housing loans. In which bank and what we can consolidate, we will find out by contacting a banking advisor.