How many consolidation loans can you have?

A consolidation loan is a banking product that people who have more than one debt reach for. In this way, they can control their finances and even reduce the number of monthly loan installments. When is it worth considering such a choice? Does everyone have a chance to get a consolidation loan? Find out the answer to this question and see if you can have more than one consolidation loan.

What is a consolidation loan?

Loan consolidation is a combination of several obligations into one. How is this possible? Suppose you decided to buy an apartment and used a mortgage for this purpose. After some time, you also signed a cash loan agreement with which you financed the car purchase.

Also, you sometimes use a credit card. In practice, this means that you have three obligations. However, you do not even remember what day of the month each payment falls on. However, delays in repayment can cost you dearly.

Interest is growing fast, and possible debt affects your creditworthiness. Do you want to avoid it? Decide on a consolidation loan.

In this way, the bank will take over the repayment of your debts, and all installments will be combined into one and lower installment! This is possible thanks to the extension of the loan period.

Can you have multiple consolidation loans?

Are you wondering if you can have several consolidation loans? First, it is worth answering the question of whether it makes sense to sign a contract for another consolidation. It may turn out that it is, because, for example, you have taken new loans in the meantime.

Moreover, during the first consolidation, you might have decided not to combine all liabilities, but only selected ones. Now have you changed your mind? You have the right to do so, especially if you decide to take out a consolidation loan during the coronavirus.

Banks do not prohibit re-application for a second consolidation loan. In most cases, however, it may be more profitable to add the existing commitments to the first consolidation.

It will not always be possible to get a second consolidation loan. It is related to the conditions that banks impose on their borrowers. 

Consolidation of several loans at the same time – on what terms is it granted?

Are you considering loan consolidation? Such a choice can relieve your home budget. However, you must bear in mind that the bank may not necessarily agree to accept the loan application. To receive a consolidation loan, you must meet almost the same requirements as any other commitment.

In practice, this equates to the need to prove creditworthiness. This may be a bit surprising. Consolidation is often chosen by people who have problems with paying off their debts, and the bank first requires them to prove that they can afford to pay their liabilities.

What’s more, the obligations you have so far affected your creditworthiness, unfortunately reducing it. However, this does not mean that you have no chance of consolidating your loan. In most cases, it is granted.

Remember, however, that the fact that the bank has already checked your creditworthiness and credit history when making previous commitments does not mean that you are already behind you. After all, your financial situation may have changed, which the bank is well aware of. 

Two consolidation loans – costs

Two consolidation loans can significantly burden your budget. Do you want to check if you can afford this solution? Suppose you decide to consolidate a mortgage loan (you have 100,000 remaining to pay) and a cash loan of PLN 10,000. zlotys.

You spread the repayment over 120 months. Your monthly installment will be min. PLN 1,362 (consolidation loan for PLN 110 thousand in Santander Bank Polska). If you decide to make further commitments and their consolidation, then you probably need to add a minimum of another several hundred zlotys to this sum.

Can you afford to pay installments for PLN 1700-1900 per month? It is not a small amount. For the bank to agree to grant you another loan, with one consolidation already signed, the installment of which is approximately PLN 1,400, you must show that you have sufficient income.

Much depends on how old you are, what you do, and what your marital status is. Certainly, however, if you earn about PLN 3,000, getting another loan will be very difficult. 

Are a few consolidation loans a good solution?

In most cases, not necessarily. Instead of taking another loan, it is better to add your liabilities to the first consolidation. However, if you are not sure what to proceed, it is a good idea to consult a credit counselor.

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