Restoring debts by collecting loans is a very useful tool in each household budget’s toolbox. It can lift heavy debt loads from your shoulders, open doors to financial freedom and let the light on an otherwise dark financial situation.
In this post, I was going to take up five easy steps to restructure your debt using this multifaceted tool.
Can I consolidate my payday loans here?
Payday loan consolidation at PaydayLoan-Consolidation official site is a way to get rid of debt quickly by combining all current payday loans and their generally high-interest rates – into a single loan with a lower interest rate. Instead of paying a number of different lenders, a new loan is taken to pay off all other payday loans remaining only one, with a lower interest rate, which allows you to pay down your debt faster.
Collecting loans is important because we often pay far too much interest and fees on many small loans. It is also important for people who are sloppy or do not seem to be able to handle paying their bills on time, as this means fewer reminders.
Many indebted people are afraid to open letters that come in the mail and are overwhelmed by being right on several different payment dates. A consolidation loan collects all outstanding debts and payments and transfers them all to a loan with only one payment date to remember and a loan condition to familiarize themselves with.
How it works
Taking a new loan to get rid of debt? How can this really help? Let’s look at an example.
Example – savings by raising loans.
Let’s say you currently have three credit cards that cost 28% in interest per year, they are maxed. 50,000 and each month you use 2500 on each card to pay them. If you were to pay for each credit card separately, it would cost SEK 7500 a month for 28 months and you would have to pay about SEK 54,000 in total interest.
If, instead, you pay off all three cards with a new loan at a more reasonable interest rate, for example, 12% interest (no, you already have credit card debt you get no unsecured loan at 3.5% interest – it’s just forgetting) and you continues to repay the loan with the same 7500 SEK per month, you will when the loan is paid to have paid about one third in interest (18 000 SEK) and you will be able to pay off your loan five months earlier.