Debt consolidation loans

Bad credit debt consolidation loan -Our debt consolidation loans are here to help

There is nothing strange in the fact that during lending we may encounter financial problems so we will not be able to pay the installments and we will lose our financial liquidity. What are the debt relief methods and for who is restructuring recommended and for whom consolidation read below?

Our debt consolidation loans are here to help, do not hang around forever

A consolidation loan is a type of loan or repayment intended for the repayment of obligations previously incurred. It is a good solution when we have several loans from different banks. Then you can convert them into one loan with a lower interest rate.

It is certainly more convenient because we pay only once a month, not a few. However, such a loan will not be given to people who have already fallen into a financial trap and are in arrears with payments. Such a loan is recommended for people who regularly pay all installments, but at some point, they feel that their household budget is too much.

There are two types of consolidation loans:

  • secured by a mortgage,
  • insecure.

A secured loan is better because its interest rate is lower and the loan period may be much longer. However, we must own a property that is not mortgaged. The second type of loan involves a higher interest rate and a shorter term of the loan (maximum 10 years).

You can read more about what to consider when choosing a debt consolidation loan.

Credit restructuring

Restructuring the loan involves changing the terms of the loan agreement. Its purpose is to relax the terms of the previous agreement, which consists in reducing the loan installment, but it involves a longer loan period.

For example, if our mortgage installment was PLN 1,500 a month and we have 10 years to pay off the debt, and due to temporary financial problems we are not able to pay back such a high amount, the bank may reduce the installment, but extend the debt repayment period, for example to 15 years. This may involve a higher interest rate.

Are you behind with installments?


You can apply for restructuring not only when we know that we will have financial problems at some time. Many people neglect their situation and simply avoid paying installments as well as avoiding talking to the bank. In such a situation, the bank takes certain actions to recover the debt.

Regardless of the high level of involvement, the bank may be asked to restructure it. Even if the bank has terminated your contract or you already have a bailiff on your mind – you can still reverse your situation by restructuring. Of course, the sooner you contact the bank, informing him about your financial situation and presenting methods to solve the situation – the more favorable for you will be the terms of the new contract.

However, if you already have problems and have been in arrears with payments for some time – you still have the opportunity to improve your situation. Remember that restructuring is also a more beneficial solution for a bank. Debt restructuring can take place through debt consolidation, i.e. combining several loans from the same creditor into one.