I have a difficult financial situation, I will probably get out of it soon, but even if I went to a new job now, the first earnings will appear only in a month, to pay off current liabilities. As you can see, I got a little blockage – can you recommend me something in this respect? A loan to pay off other loans.
Search the web for “Consolidation Loan” in most banks or loan companies. His idea is that for the funds obtained from the consolidation loan, you pay off old liabilities.
The consolidation loan is usually extensive in repayment so that the monthly charges are not too severe. An example of the cost of a loan for about USD 70,000, in a bank it is about USD 25,000. In non-bank companies, it will be proportionally more or less the same, but non-bank companies have much milder criteria for granting such assistance (consolidation).
I will express a different opinion because I am not in favor of loans or consolidation loans. And certainly not in a situation where you can only worsen your financial situation in this way, because we make an appointment, we buy more time in this way.
We buy literally because the consolidation is not a salvation, it is additional debt. A lot of people are looking for consolidation and refinancing loans.
Remember that this is not a cure for all our ills, because swapping debt for even greater debt, but spread over time is not a very good direction.
Remember that each subsequent consolidation will be on worse terms than on better ones.
I know people who do this, take a loan, buy or renovate something, then a new need arises, so they choose another loan to pay off the old one and leave something for new purchases or renovations – and basically non stop They pull. They claim that they have no other choice because of where to get the money from.
They are probably right. So it’s all designed, what will you do? You will not do anything. A consolidation loan is good, but not in every situation. Because there are situations in which consolidation is counterproductive because in total and in absolute amounts it is more expensive.
Due to the fact that they are contracted by people in financial difficulties who have the proverbial knife at their throats. In my opinion, before the final decision is made, it would be good if it was preceded by consultations with a financial / credit advisor.
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