Getting into a spiral of debt is not difficult at all. This is because most people who resort to some kind of loan or credit have an equal source of income. If you use the money from a loan - you have to pay the rate from this source. And since it has been insufficient for daily needs so far, there is no reason to believe that it will be enough to meet another financial obligation. The consolidation of moments can help in such a situation. These are the momentary moments that are the most common non-banking product, leading to a spiral of debt.
Why is it difficult to repay temporary loans?
Characteristic features of the current moments are: short loan period, low availability of money for lending, high interest rates from the first day of the delay and the need to pay out the entire amount once. It's worth adding another feature to these features - the simplicity of receiving such a current payment. The repayment of current payments is therefore really difficult if it has been zero each month so far, when it comes to the balances of revenue and expenditure. After a month, it is difficult to take a sudden amount of several hundred or several thousand dollars in Verizon interest and to lend a loan on time.
For such people, the company has prepared a modern financial product - the consolidation of moments for debtors. This is a larger loan that allows you to fully cover the costs of the moments you have taken so far, and at the same time get rid of the debt in several loan companies. The early repayment of non-bank products also helps to stop the calculation of additional interest rates, thereby slowly reducing rather than further deepening the liability incurred. Nowadays this is the best way to get out of the current loop.
Consolidation of bank loans
The consolidation loan granted in the bank is formally a bit more radical. To get such a loan to repay other loans, you need to have a good credit history. Obtaining a consolidation loan is therefore somewhat time consuming and complicated, but it allows you to get a debt that is easier to pay off.
Credit consolidation is recommended for individuals who have used multiple bank products - credit card limits, direct debits, installment payments in a furniture store, consumer credit for a washing machine, mortgage loans for an apartment. Nowadays, many young people live this way and practically do not go to zero, because they use debit and credit cards that have to be repaid. Every deposit into her account goes almost immediately to settle all her obligations, and her living expenses are covered, as usual - from the credit limit for the next month.
Is it worth it to take out a consolidation loan?
Debt credit for people who live up to the example above can be a cool way to finally have black and white as much as it seems. Consolidating multiple liabilities into a single account and paying only one account makes things much easier. You do not have to pay attention to the schedule, pay out several credits, and sometimes it's really hard to find the connection. There is no need to transfer installments to many different accounts, which can add extra fees to the bank and also waste time. A consolidation loan helps you to collect all your debts in a single amount and pay only one installment per month.
It's noteworthy that as in the past, people often live quite chaotic - they do not know how much they have and do not check it because they are overdrawn. They do not calculate if they have enough money by the end of the month because they can always buy something on their credit card.
In this way, you can lose control of your income and expenses, not even knowing that you have lived beyond your means for a long time and spend more than you earn! Unfortunately, this is not conducive to building financial independence, which is why such people are often stuck in a job that does not satisfy them, because they can not afford to give up and take a break from work to seek their own way of life.
The early repayment of loans thanks to a consolidation loan is therefore one thing, and not the inclusion of new ones - another. Unfortunately, the only way to get out of the loop of current cards and credit cards is to repay debts and stop taking new ones. This in turn requires you to tighten your belt, give up some of your pleasures, and slow down your spending. Although consolidation loans allow you to get rid of several vendors simultaneously and have only one at a time, they are still loans. They have to be repaid, the timetable must be adhered to and the expenses must be limited.