Payday loans with another loan? This is a straight path to the debt spiral! However, if you choose a debt loan, this scenario does not have to come true. The heroes of our post today have already found out about it. Learn their story. Find out more: Maciek and Agata have just moved into their new home about the debt spiral . Over the past few months, they have worked intensively to make the interior look as they dreamed of.
They did most of the things themselves. The loan taken for renovation purposes turned out to be insufficient. During the work, new expenses appeared that our heroes did not foresee before. It was therefore necessary to reduce labor costs. Unfortunately, not everything could be spared. Maciek and Agata had to reach for further financial support from outside. So they took a few payday loans. Unfortunately, in the case of quick loans, the repayment date has passed relentlessly.
Money had to be given back after a month, and all the savings and free funds of the young marriage were consumed by construction. So the situation was very difficult. Searching for a solution, Agata reached one of the discussion forums regarding debt problems. It was there that she heard about debt loans for the first time. She felt that this would be a solution that would help them get rid of financial problems. Intuition did not disappoint her.
Debt loans – what is that?
As the name suggests, debt relief loans are financial resources that we can borrow to repay current liabilities. So if, for example, like Maciek and Agata we have several payday loans and we do not have the right amount to return the money borrowed, we can consolidate our debts into one. All we have to do is take advantage of the debt-free loan and settle all active liabilities. By choosing such a solution with a new lender, we are able to agree on another installment that is convenient for us, as well as extend the time to repay the debt.
Debt loans – who grants them?
We can apply to a bank or non-bank company for a debt loan. When choosing a bank, the easiest way is to get a loan for any purpose. In the case of non-banking companies, we can, however, come across an offer specifically designed to pay off current debt.
Is it worth it, or the pros and cons of debt relief loans
Whenever you decide on a loan, you should think carefully about this move. In this case, although the situation forces us to such a step, we must also use common sense and think carefully about the benefits of such a solution. On the side of the advantages of a debt loan, we can certainly note the option of quickly getting rid of existing debts. By repaying such obligations on time, we avoid unpleasantness related to debt collection or the need to pay criminal interest. A debt relief loan is also a relief for our home budget, which no longer has to deal with several repayment installments.
By using this solution, we usually pay the debt back at convenient terms. Although the advantages of a debt loan come to the fore, we cannot forget that such a solution also has its drawbacks. By choosing this form of repayment of current debts, we may be getting rid of uncomfortable loans, but we are still left with a commitment that will have to be settled sooner or later. And that means a constant burden on our home budget for a good few months. What’s more, a debt-free loan can reduce our creditworthiness. We will especially feel it, e.g. when shopping, when you want to buy something in installments. This may not be possible with weaker credit standing.
Although the debt relief loan is a product created typically for people struggling with debts, this does not mean that every such customer will certainly receive it. Agata and Maciek succeeded. They will pay their liabilities for three years, but its current installment is a much smaller burden for them. We must remember that in every case the lender is obliged to assess our creditworthiness. He should also analyze our current financial capabilities and only on this basis should he decide to borrow money. So there is a probability that in the eyes of such a lender we will be insolvent and the loan granted to us is too much of a risk for him. However, if our financial situation allows it, choosing this option to get rid of debts may be one of the best decisions.