A Good Consolidation Loan is a Cheap Credit with a Small Loan Installment
Good consolidation loan for consolidating debt, or what? Cheap first of all. An editorial over at http://gaoodgle.com
Consolidation is primarily about “combining” several loans and credits into one loan. By extending the repayment period, the amount of the loan installment is reduced.
A good consolidation loan is therefore a loan that has the lowest effective interest rate (APRC) and the total cost of the loan. Where for such a loan ? You can read the loans below.
What is consolidation?
Consolidation is a “combination” of credit commitments taken out in banks into one loan. We do not pay a few monthly installments, only one. On average, thanks to consolidation, loan installments can be reduced by up to 20-30%.
Good consolidation loan, or where to consolidate loans?
To look for a good loan to consolidate debt, of course, such loans should be compared. However, you should know what costs affect the price of consolidation loans.
The main cost is, of course, interest. The bank provides interest on an annual basis and can be fixed or variable. In addition to the nominal interest rate, there are additional costs, such as commission or insurance. Their amount is not constant and depends on the offer of a specific bank.
The commission for granting a consolidation loan is charged after the loan has been paid out. It can be added to the first installment or spread over installments.
No insurance is required, but banks often offer it. For example, they offer a lower interest rate or a lower commission if we decide to buy insurance.
Comparison of good consolidation loans
In connection with what has been written above, we do not compare loans with nominal interest rates, but according to APRC or total costs.
APRC, or Actual Annual Interest Rate, shows in percentage the relation between the total cost of the loan and its amount. The APRC includes all credit costs, such as nominal interest, commission, preparation fees and insurance.
Thanks to it, you can compare loans with the same loan term and find a good consolidation loan yourself.