Unfortunately, standard advice from financial advisors for people with financial problems is unrealistic to implement. A consolidation loan for real estate?
Super, but rarely every borrower has such valuable collateral.
And then what?
The problem begins when the current salary is not enough to process all payments to the bank. There is no longer room for financing the usual needs of everyday life. Cash loan installments and credit card repayments are beginning to exceed the borrower’s financial capacity. Too late for prevention. You have to heal.
The easiest way to get real estate
People familiar with the topic of loans usually know that the cheapest is for a mortgage. Putting all types of loans in one bag, bringing it to the bank and converting it into one – mortgage, is the cheapest solution. Rarely, however, who owns the property that may be the collateral for the loan. Friends and family will not allow you to load their four walls. What to do then?
Look at the loans
First, analysis. What, to whom and how much do you owe? Listing the commitments with their exact characteristics is an extremely important stage of the entire operation. For example, a cash loan taken out a year ago for two years and intended to be repaid in equal installments may already prove unprofitable to refinance today. Because in the remaining installments, the lion’s share falls on the loan itself, and only a small fraction on interest. Thus, in real terms the loan already has low interest rates. You need to understand which loan is the most severe and is the fastest to fire and which one can wait.
What hurts more, the price or the installment itself
Credit payments outweigh the salary. In this situation, the interest rate on loans is not so important. The repayment amount itself is more important. Let the loan cost up to 30% a year, but on condition that the monthly installments will be reduced by, say, half.
Of course, for the price of extended repayment periods. Focus in the first move on the possibility of extending schedules, delaying repayments, receiving a grace period in servicing installments. It is important not to receive a negative entry in the Credit Information Bureau, which would inevitably occur if the bank did not receive the money on time.
Do everything to pay on time
Using a credit card at an ATM will be an expensive operation. You will incur an additional commission cost, and interest will accrue from the day of the operation.
However, if you use the obtained money to pay off another loan, you can get out of the whole operation better. You will gain time to master the whole problem without falling into the black list of unreliable debtors.