I have a debt of almost USD 14,000 in payday loans, so far I have paid it regularly, I have no interest yet, because I pay, but I take one payday loan to pay the other one. In addition, I have a few installment loans, which I repay every month, for which I have money, I bring up my child alone, I have maintenance not granted in court to receive an additional 500+ and family payments.
I earn extra money as a beautician, I draw out 1300 dollars for a month, but this is not documented anywhere as maintenance. Now I don’t know, I would like to get out of these payday loans to pay them off and pay one installment only. Which loan company will grant me such a loan? consolidate my debts into one? Any suggestions? what should I do? will I get a hint? I can’t go to work normally because I have a small child.
Consolidation of payday loans without capacity
Hello, the fact that you still repay all payday loans on time will definitely help you obtain a consolidation loan that can be provided by a loan company, unfortunately you don’t have a chance for a consolidation loan in a bank, even if you don ‘t have all your income documented, and those that are documented – will be insufficient.
Unfortunately, I am not able to show you a specific consolidation loan because this is not the mission of this blog.
However, I can give you some tips to help you choose the right loan company and offer.
How to choose the best consolidation loan for the unemployed?
The loans and consolidation loans market today is so extensive in various offers that it is impossible to choose something sensible. Therefore, when choosing a consolidation loan, you must take into account several criteria, thanks to which the offer you choose will meet your expectations 100%.
I would also like to add that choosing the right consolidation loan is crucial because you intend to get involved with a loan company for a longer period of time, so it’s best to consolidate with the cheapest possible expense and minimum formalities.
In general, debt consolidation involves the combination of all liabilities into a single liability, with only one installment payable every month instead of several.
With a consolidation loan, you can consolidate:
- online payday loans,
- installment loans,
- Bank credit,
- card limit
- car loans,
- and many other obligations.
By consolidating the liabilities that you have, you can also get an extra amount of money for any purpose (however, I always advise against choosing an additional amount of money), because consolidation of obligations consists in reducing debt, not increasing it by another amount of money.
Types of consolidation loans without capacity
- Cash consolidation loan – this type of financing is granted without collateral, however, you must have fairly good credit standing, which you have, unfortunately, poor (undocumented).
- A consolidation loan with collateral – in fact, with undocumented income, you can authenticate yourself to the lender by pledging eg real estate. Then the creditworthiness is not taken so much into account, because the amount of the consolidation loan depends directly on the value of the property or movable property (eg car, jewelry) that you intend to pledge.
Where is the easiest to get a consolidation loan?
By. me, the search for the cheapest offer is best to start with three tools, each of us has at our disposal, what tools are we talking about? so these are:
- consolidation loan calculator,
- ranking of consolidation loans,
- consolidation loan comparator.
At this point, I invite you to an article in which I described how to use these tools: How to find the CHEAPEST credit or loan? calculator + comparison engine + ranking. I would also like to add that when choosing a consolidation loan or consolidation loan, you should be careful and prudent.
To choose the best offer from a number of proposals, compare the selected offers with each other, primarily guided by the costs you incur due to consolidation. The more loan offers you see, the better you will know which loan company offers the cheapest, easiest and fastest consolidation!
When it comes to the cost of consolidation, pay special attention to the APRC indicator, which illustrates the percentage of the cost of incurring a liability (the lower the ratio – the better). Before taking an online consolidation loan, it is worth making a phone call to this loan company and confirming the cost of consolidation, also asking for the documents they require. Of course, nothing prevents you from taking advantage of the offer of the local loan company in your area (provided that their offer is satisfactory and profitable).
Main and secondary consolidation costs
I mentioned that you should pay attention primarily to the APRC loan, but in addition to this indicator, it is also worth paying attention to:
- commission charged by the loan company for granting the consolidation loan,
- and the total cost of consolidation.
The total cost of granting the consolidation loan will show you how much you will have to pay back over the entire duration of the consolidation agreement, along with all the incidental costs you incur.
How to adjust the amount of consolidation loan and installments?
Since your debt in payday loans is USD 14,000, look for a consolidation loan of USD 14,000, now it is time to determine the amount of the consolidation loan installment. Here you will have to do homework, which consists of calculating your creditworthiness, so you have to count all your revenues and expenses and calculate what monthly installment of the consolidation loan you are able to pay!
Take into account the seasonality of your revenues and unforeseen expenses that you may have to bear in the future, the main thing is to calculate the installment that you can afford, even if I do not know what happened … so take into account the different life scenarios!. But know and remember that extending the repayment period, even when the consolidation installment decreases, unfortunately increases the total cost of the loan.
That’s why you can’t unduly lower the installment to unnecessarily extend the repayment period of the consolidation loan, while bearing higher financing costs, ie interest.