In the World of Loans: What is Consolidation?

A growing group of Poles live on credit, and people who are indebted to several banks at the same time are increasing from month to month. Repaying them often turns out to be a serious problem. How to deal with your own debts? How to reduce any inconvenience related to their repayment?

counting money

Where is the debt from?

Where is the debt from?

An emergency situation and no savings – this combination makes the majority of Poles reach for a loan. PolyBank is one of the institutions to which Poles report in problematic situations. What? Car breakdown, the need to buy new household appliances or other random situation, which is associated with unexpected expenses. The problem is that Poles take out such loans more and more, using the services of various banks. Effect? Several loans repaid at the same time. This phenomenon is associated with other problems that can seriously annoy life.

When loans become a problem

When loans become a problem

For many people, one loan becomes a serious problem. The amount that needs to be paid in due time on a monthly basis and compliance with these deadlines can cause many problems and those who are indebted only to one bank. What are they to tell you who have borrowed in several institutions? For them, the problem is primarily to maintain control over repayment dates, and the necessity to pay several loan installments at the same time means that there is little left from the payment of a living. What is recommended to those who pay liabilities to obstruct normal functioning? Amazingly, the most recommended solution is to take another loan here …

Or maybe consolidation?

Or maybe consolidation?

A consolidation loan is a unique phenomenon that allows banks to make it easier for customers to repay various debts. The rules for such a loan are simple. A customer who repays several loans simultaneously transfers them to one bank. Here, small loans and smaller loans are converted into one, larger loan. Benefits? With several installments, one is created with a contribution that does not hinder the client’s normal existence. Such credit has been spread over many years, but thanks to this it becomes an easier liability to pay off. Often banks grant such loans for up to 40 years. With a consolidation loan, it is worth paying attention not only to the amount to which you can be indebted. It is also worth checking what security the bank requires and what form of security is the most advantageous. The most popular option is a loan with a mortgage collateral. Usually the interest rate on this form of consolidation is much cheaper than the cash loan granted to those who can not boast of real estate collateral.

The offers of banks offering consolidation of loans are quite diverse. Such a solution currently has many branches, like the well-known PolyBank. Opinions on individual consolidation loans can be found both in online comparison websites and in trade press. It is thanks to them that you can choose the best solution.

Subscribe to a personal loan online

Minimum age to take out a personal loan?

Minimum age to take out a personal loan?

If the subscription of the personal loan is open to all, there is however a minimum age. Indeed, only adults can apply for consumer credit.

Perfect for younger people who do not have large savings, the personal loan allows to settle down and enjoy many benefits such as fixed monthly payments and an interesting term.

Domiciliation in France for the subscription of the personal loan

Main obligation when you want to subscribe a personal loan, the borrower must have a current account domiciled in France. In fact, this condition must allow credit institutions or banks to directly withdraw monthly payments from the credit and to reimburse themselves in the event of late payments.

French nationality is however not mandatory when subscribing the personal loan, only the bank account must be French.

Obligations to be met when subscribing to a personal loan

personal loan

The subscription of a personal loan requires a certain compliance with the rules of the Consumer Code, as well as several obligations claimed by financial institutions lenders.

The latter in particular provide guarantees to banks who want to make sure they can recover their money as well as the interests of credit.

The rules obviously vary from one bank to another, but always bear on the security of the amounts committed:

  • The borrower must be solvent and prove his financial health. The credit institution is thus entitled to check this information with the Banque de France files. The borrower must also not be prohibited from banking to subscribe a personal loan.
  • The borrower’s salary must be able to cover all the deadlines without hindering his daily life. Indeed, all credits, whether consumption or not, must respect the rule of 33% maximum of the overall income of the borrower.
  • The borrower undertakes, in the loan agreement, to repay the entire amount borrowed, as well as the interest charged. In the event of late payment of the monthly payments, the lending institution gives itself the authorization to charge terms and conditions whose terms are set out in the personal loan subscription agreement.

It should be noted that, if it is not mandatory, an employment contract of indefinite duration will be favored when the credit is opened. Banks are looking for reimbursement insurance