It is no secret that it is easiest to incur a payday, and it is definitely more difficult to pay it back at the right time and in the right amount. Although the role of these benefits is to help those who need fast and urgent cash for an unexpected expense, this is often not enough. Due to various life turbulences, many borrowers fall into the so-called spiral of debt, incurring many payday loans. Is there any reasonable way to solve this type of problems?
The basic assumption of the functioning of payday institutions and quick loans is to offer services to people in extreme financial situations. Unfortunately, although many loan companies try to avoid people who are in debt or are obliged by many other loans, there are still many cases of people who fall into a spiral of debt.
This phenomenon is nothing more than falling into multiple debts. For example – if you want to pay back the loan, whose deadline is approaching too soon, we will take a break. We fail to collect money on time and take out another loan so as not to fall victim to debt collection. In this way, record holders are able to incur even a dozen loans, the repayment of which becomes more and more difficult over time. However, not all such situations are completely out of the ordinary. Along with the multiplication of cases of people falling into multi-level indebtedness, such as mushrooms after rain, services providing advice to indebted people have grown up on the market. Established ways to try to free yourself from many loans or payday loans. Let’s get to know how it works.
Easy online payday loan consolidation application
We mentioned a consolidation loan. However, there is also a payday loan consolidation service. The difference between these two services is significant. It is based on the fact that with respect to creditworthiness, the creditworthiness of the indebted person is not taken into account. In addition, good results in BIK are also not required.
Generally speaking, consolidating debt is a chance to get out of a difficult financial situation at a low cost, but you should carefully read the terms and consider whether it will not deepen our financial problems.
How do you pay off your payday?
The first is to divide the indebtedness into four categories.
- If our debt does not exceed PLN 3,000, then it is worth thinking about taking out a free loan to repay the existing one. Lack of additional costs will undoubtedly reduce the risk of an unexpectedly high burden on our finances, however, the condition is one – the new payday must be repaid on time.
- If our liabilities do not exceed PLN 20,000, it is worth considering a non-bank loan for a longer period of time, e.g. 3-5 years. The loan will be charged with additional charges in the form of interest and commission, but we will be able to repay the receivables in low installments.
- On the other hand, if we are indebted for more than PLN 20,000, we have already paid all our debts on time – it is possible to take a consolidation loan. This type of service provides for the possibility of combining several debts into one. It has one great advantage – it allows us to avoid the growing amount of debt. However, it has specific conditions – a fixed income of at least PLN 1,900 net and good credit history. The disadvantage is undoubtedly the difficulty in obtaining this type of loan.
- If our debt exceeds PLN 50,000, we do not have any assets and we have a negative credit history – in such a situation it is worth considering the issue of consumer bankruptcy.
Ways to get out of the debt loop
Here are the most popular ways to get out of the tightening debt loop.
- Negotiating new terms of debt repayment. Before the company takes debt collection steps, it is worthwhile to report to the non-banking institution in which we borrowed and ask for a renegotiation of the loan terms. The debtor will protect it from the spectrum of entering into the debtors’ register and the para bank from the costs of debt collection.
- It is worth making a list of loan companies in which we have arrears. It is best done in the following order: company name, amount of debt, installment amount and finally the date when the loan repayment deadline has expired. This will allow you to plan the scale of your debt with a cool head and take a plan of action.
- Unfortunately, you also have to consider the sale of expensive property, which will allow you to get extra money to pay off your arrears. If the amount of debt goes in a dozen or even tens of thousands of zlotys, you have to take radical steps – otherwise, the bailiff will auction out some of the costly property anyway. It is worth considering selling the following popular items: jewelry, a collection of medals, a TV set, clothing, footwear, a camera, old paintings, souvenirs, and even a bicycle and a car.
- It is worth not giving up when you realize the amount of debt. It is necessary to pay back as much as we can by ticking in the title of transfers that we pay installments for the capital of the loan. By specifying this in the title of transfers, in the case of a court hearing, it will be an argument that we have made efforts to settle the debt.
- Under no circumstances should we use the services of little-known companies with an uncertain market position and the intricate content of the contract – this can dramatically deepen the scale of our debt.