Payday loan consolidation is the right solution for you
Origin of debt consolidation: These are products and services that have been brought to Italy by foreign banks and that today are offered by a wide range of Italian operators.
Who is interested in debt consolidation? In 99.9% of cases, those who are already over-indebted.
So, is debt consolidation the right solution to over-indebtedness?
Many think that debt consolidation is the best solution to over-indebtedness. On the other hand, there are very few cases where it is. Often, making a debt consolidation is like trying to defuse a time bomb, without having a clear idea of which wire to cut. Actually when you get it, if you do not pay due attention, all you do is move the timer that will determine the moment of the explosion. But the explosion will be practically inevitable. Those who have already done so know what we are talking about.
If you are thinking about it, you will do well to read the following lines.
There are very few cases in which debt consolidation can be “not harmful”.
- The new loan will have additional interest, calculated over a very long period, and the interest paid up until now with the old loans will be added to these. It will cost you an inappropriateness, (usually twice the current debt) even if you have the illusion of the convenient installment. It will bleed for another 10 years (almost always at least this time)
- Almost always, for the same reasons that today do not allow you to pay the current loans, you will not be able to pay even this last loan. ( 95% of the families that have already done so do so ).
- Furthermore, the period of economic suffering that preceded the consolidation operation could push you to allocate part of the money – which should be used to cover the debts – at a neglected expense for a long time. Like that vacation, you didn’t do for many years or that beautiful gift you promised your wife. Or maybe the 70 inch TV since the old is now on its way to sunset. Or for the car of the newly registered family. Soon, you’ll find yourself struggling with a monthly expense that is slightly different from what you had before. Only now the debt is more or less double.
- It will generally end up putting you and your family in trouble, as well as those who will sign the guarantee. (Yes, because usually the bank asks for the signature to guarantee a family member or worse, with a loan operation, the mortgage on your home or of the family member that has guaranteed).
The real risk is that of moving from a state of serious debt to an irreversible one with tragic consequences for all those involved.
So debt consolidation is never advisable?
No, never. There are circumstances that are carefully weighed and especially monitored carefully, perhaps by a specialist in debt management, and can have a positive result. However, extreme care must be taken.
Finally, a reflection on the feasibility of debt consolidation.
The reasons that induce a subject to resort to the solution of debt consolidation are often linked to a situation of suffering already advanced. The situation that usually has already generated delays in payments of loans or mortgages and consequently, reports in private databases. These conditions make it almost impossible to issue a debt consolidation, which, by its nature, is by far the most difficult loan to obtain.
The frustration caused by the frantic search for the financial company that promises to provide amazing loans even to 90-year- olds accompanied by their parents, can generate further discomfort. This discomfort can push you to the search for extreme solutions, such as entrusting subjects who practice the strangler or even worse. Even if you do not see a way out, it does not mean that it does not exist.