In an increasingly consumer-based world, many people find themselves in financial distress because of the large number of ill-considered unfavorable loans. If you take on more loans than you are actually able to repay, so that you have at least some money to live on, you can easily get into a debt trap.

 Loan consolidation is a common offering of banks

Loan consolidation

One way to grow out of such a tricky situation may be to consolidate loans with one creditor. The point is that all your previous loans will be merged into one and you will continue to repay this single loan.

This noticeably reduces the amount of interest and also extends the repayment period so you get time and the possibility to simply repay the loan. Loan consolidation is a common offering of banks, as well as non-bank lending companies. From this wide range you can easily choose the most advantageous loan consolidation. If you have failed to apply for a loan consolidation at the bank, for example, due to a negative entry in the registers, it is possible to consolidate loans with some of the non-banking institutions using a loan with real estate collateral which is also suitable for disbursement.

What is needed to consolidate loans?

Most banks and non-banking companies require two identity documents from clients applying for loan consolidation, that is, an identity card and, as a second document, a passport, driver’s license or birth certificate.

Documents that are associated with previous loans, such as contracts, notes, credit card or overdraft statements, and / or credit quantification, should also be documented.

Banks require a sufficiently high regular income to be substantiated. If you are on the debtor register or do not have a regular income, your bank is unlikely to approve the consolidation, in which case you can contact one of the non-bank lenders who allow loans to those who do not have a sufficiently high income or are completely devoid of provable income. or have a negative entry in the registers.

Interest on non-bank loan consolidation is somewhat higher and real estate collateral is usually required, but on the other hand it will enable almost anyone to consolidate loans.

How to choose the best loan consolidation

How to choose the best loan consolidation

To find out which loan consolidation offer is the best and most advantageous, use consolidation calculators on the websites of individual financial institutions. Here you will fill in a few simple details and in a moment you will get non-binding information according to which you can easily compare which loan consolidation offer will be the best for you.