Debt consolidation is certainly a convenience, above all because you have more monthly liquidity at your disposal, but as always, you pay for the comforts. The example is purposely simplified to best exploit the mechanism of the calculations necessary to compare 2 or more financial products without going crazy with the percentages of interest rates, with the capital and the amnesty of fixed rates and expenses.
The first step to take is to recognize that you are over-indebted and keep in mind that if you skip the payment of the installments the situation worsens. To solve the problem, it is useful to ask for quotes as soon as possible and to examine the debt consolidation repayment plan for Quick Cash Loans in detail.
The second step is to evaluate the existence of other alternatives, for example the sale of a property, the use of an emergency fund, the collection of a life insurance policy, the collection of a pension fund. During the same period, consolidation charges the debtor a good $9,000 more than the maintenance of various loans.
The last step is the evaluation and risks such as the mortgage on the home and its possible loss, or the use of a fund saved for other purposes such as medical expenses or the university for children.
What documents are required for consolidation? Documents required to apply for debt consolidation are: identity card, income documents (pay slip, CUD or tax return). The extinction counts of the loans in progress (they will be used to close the debt with the other Quick Cash Loans or banks by paying the relative sums). Any other documentation requested by the financial institution (for example the guarantor’s income documents).
The request can be made by private, state employees, companies, self-employed workers, freelancers and pensioners, the unemployed must present a document certifying the income, such as receipts for the rental of a property. Consolidation, although a useful tool to eliminate debts, must be considered as a classic loan or mortgage, with its unfavorable characteristics for the customer.
In the information sheets, on the quote and on the contract, always check the tan and applied that are not unfavorable or different from those previously agreed. In the event that they are unfavorable, the customer may not sign the contracts and refuse the loan. Also check if there are any expenses to be incurred such as the fees for the collection of the installments, the sending of annual statements, charges and expenses for the insurance, etc.
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