Long-term loans for those in debt – how does it work?


Cash loans granted by mate-bank institutions are practically available immediately, without verification of creditworthiness or information in Retro. On the one hand, this makes it much easier for the borrower, who for various reasons can not wait long for a loan decision from the bank or does not have adequate capacity, on the other – the ease of obtaining such a short-term loan and high interest may eventually contribute to the emergence of serious debt. Will long-term loans work in such a situation?

A person in debt can, of course, apply for a consolidation loan, which in the event of financial problems related to a large number of loans taken out, may be the only way out of the situation. However, what if the bank refuses such a loan due to a bad history in Retro or a lack of stable income? Consider using a long-term loan for those in debt. Admittedly, these types of financial products are not usually offered by popular banks (which examine the creditworthiness, history and income of the client in great detail and may reject the application due to these factors), but by various types of loan companies, matebank institutions and private investors. Long-term loans for indebted will therefore be an ideal solution for people who for many reasons will not receive a consolidation loan in the bank.  

Long-term loans – costs and profits

Long-term loans - costs and profits

What does a person gain when they decide to take a long-term loan? First of all, it is a calmness related to maintaining financial liquidity and stability of repayment of previous debt. Timely, regular repayment from a long-term loan also helps to improve the situation of a given client in the Credit Information Bureau, and, moreover, paying installments extends over time – from several to even several months while maintaining a lower installment, which translates into a higher probability of repayment within the prescribed period.

Many people ask themselves how much long-term loans for debtors really cost. To choose the cheapest offer adapted to the current financial situation, you should use the support of a professional adviser. Thanks to it, it will be possible to choose a long-term loan that will not prove to be another burden on the portfolio, but a guarantee of financial peace. It should also be remembered that the cost of a long-term loan increases in proportion to the time it is taken. This means that the longer the repayment period lasts, the higher the installments will bear interest. The price of this type of non-bank products depends primarily on the lender’s policy – so that you do not get lost in the thicket of offers and find the one with the lowest APRC, it’s best to use the help in choosing and report to an expert.

Long-term payouts – what to prepare for?

Long-term payouts - what to prepare for?

Some people already in debt and looking to get out of the situation may be afraid of another commitment in the form of a “long-term payday loan”. Unfortunately, for many borrowers it may be the only way out, so it’s good to be well prepared for it. First of all, when comparing offers, you should check their APRC, i.e. the actual annual interest rate, which indicates the expected cost of a long-term loan. In addition, you need to carefully analyze your financial situation, create a balance of income and charges that will show whether you will be able to pay off your long-term commitment. The next step is to prepare the necessary documents – usually it is an ID card as well as proof of specific income. The whole procedure can take place over the Internet, which saves the borrower’s time and minimizes the stress of contracting.

Although for many people long-term payday loans may be associated with deepening financial problems, it is not worth demonizing them – they are a chance to get out of the spiral of debt, especially in the case of people excluded by the banking sector due to lack of creditworthiness or unfavorable history in Retro. Such a commitment, made wisely and with a qualified adviser alongside, can be a real relief – both for the portfolio and the mentality of the borrower in debt.

Long-term loans at the bank

Long-term loans at the bank

It is worth noting that it is also possible to get a long-term loan from a bank. The credit expert has the option of negotiating at the decision-making level, thanks to which even in a difficult situation there is a chance for a positive decision. In many cases, there is the possibility of an individual approach to late payment, creditworthiness or too many liabilities. A bank loan may require greater involvement of both the customer and the credit advisor but it is much cheaper than non-bank financing.

Each situation is different, each client requires individual treatment and finding the best solution.

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