Get the Best debt consolidation near me
Debt Consolidation is primarily aimed at reducing the costs of servicing the consolidation loan. It is a method of combining several unpaid financial obligations into one. The borrower signs a contract for a consolidation loan with a bank that offers repayment of its debt. In this way, it gains the opportunity to extend the loan period, and thus reduce the monthly loan installment. Although it seems to be an ideal solution, one should reckon with the fact that banks wanting to earn on consumers will offer higher interest rates on consolidation loans.
Online offers of banks advertising on the Internet want to attract the attention of potential customers by proposing favorable values of the consolidation loan interest rate. However, the so-called Nominal or variable interest rates throughout the year do not fully reflect the cost of the loan itself. The most important indicator, in this case, is the annual real interest rate (APRC). It is this parameter that represents the total cost of the loan, not just it’s capital. The higher the APRC value, the higher the cost of the loan and depends primarily on the loan period and the amount the consumer is applying for.
- Patters Bank – for an exemplary amount of PLN 78,400, the actual interest rate on the loan is 7.57% and the total amount to be refunded is PLN 109,156.82
- T-Collin Services – here for an exemplary amount of PLN 53,000, APRC equals 13.75% and the total amount to be refunded PLN 92 418,21
- Credit Reed – for a loan in the amount of PLN 32 600, the APRC is 10%, the total amount to be paid is PLN 42,546.61
- Haase- a loan in the amount of PLN 38,700 with APRC 20.96%, and the total amount to be refunded is 65,646.95
The complete consolidation offer with an indication of the cheapest products is available. The ranking of consolidation loans we created is presented by us.
Although the RRSO indicator is the most important interpretation informing borrowers about the costs they incur, the maximum loan amount and the repayment period itself are equally important. Because a longer repayment period guarantees lower monthly installments, but at the same time interest increases. The right choice is one in which these three components are balanced and make applying for a loan profitable and profitable.