A debt loan is the last hope for debtors who are unable to pay past due obligations. It allows you to pay debts claimed by the bailiff and debt collection companies and to regain lost liquidity. However, it is a very expensive solution. How is it different from the payday loan? Is this an online loan? When should you use it and where to look for it? Advise!
What are non-bank debt loans?
A debt loan is a proposal addressed to people in debt who are unable to pay their outstanding debts. It is intended for customers who do not have creditworthiness, and thus cannot take advantage of the consolidation loan offered in banks.
Non-bank institutions that grant debt loans do not attach importance to whether the applicant is entered on the list of debtors. Therefore, non-bank debt loans are available to everyone. However, taking them is associated with a high risk, which is why loan companies expect their collateral and impose high costs.
A loan for debt relief is sometimes the last chance to get out of debt and regain financial liquidity.
Is it possible to take a debt loan online?
An online debt relief loan is available at many non-bank companies. However, sometimes granting it is slightly more complicated than applying for a cash loan. In the case of larger amounts, the lenders expect collateral, usually on real estate.
The waiting time for a loan decision may therefore be longer. It is also necessary to perform activities related to entering a mortgage in the land and mortgage register, which cannot always be settled online. However, a loan for a smaller amount can be granted without leaving your home.
What debts can I pay off with a debt loan?
Each loan institution independently determines the scope of liabilities that can be repaid with a debt-free loan. So you will find both offers that allow you to pay off bank loans as well as offers payday loans in non-bank companies. Some loan companies, however, do not specify what exactly the money from the loan is to be spent on.
Theoretically, you can use them for a purpose other than paying off debts. Unfortunately, this will not bring you closer to solving financial problems.
What is the difference between a debt loan and a consolidation loan?
A debt loan can remind you of another financial product: a consolidation loan. Both are designed to help you deal with financial difficulties, but there is one fundamental difference between them. The consolidation loan is intended to pay off liabilities that are not yet past due.
Debt loan, on the other hand, is granted to people whose debts have not been repaid for a long time, are entered on the debtor’s list and are even being pursued by a bailiff.
Consolidation loans are granted not only by non-bank companies, but also by banks. Debt loans are only offered by loan companies. They can be used by people with a negative credit history and entries on the list of debtors, which is not possible in the case of bank consolidation.
A consolidation loan
How are debt relief loans granted?
Each loan company itself defines the rules for granting debt relief loans. However, they do not differ significantly between specific companies. Usually such loans are granted without checking the status in the debtors’ databases. Depending on the amount of the loan, they may be granted against real estate or other forms of security.
Normally, to apply for such a loan, you must complete the application on the lender’s website. Due to the fact that debt loans are risky for companies, they were burdened with high costs. Therefore, before taking them, you need to think carefully about whether it will be profitable for you to make such a commitment and to get to know the total cost of the loan.
What documents are required to take a debt loan?
To obtain a debt-free loan, you must provide more documents than when applying for a cash loan. What are these documents?
- Confirmation of regular income : statement of income from the last three months on the bank account, certificate of income from the employer, decision to grant a pension, civil law agreement;
- loan collateral : for example, an excerpt from the land and mortgage register confirming ownership of a property or the signature of a guarantor.
Who can apply for a debt loan?
Everyone who fails to settle overdue liabilities can apply for a debt-free loan. First of all, it is addressed to people with a negative credit history, whose liabilities have already been sent to a debt collection company or bailiff.
So if you are already on the BIK, BIG or KRD list and you are unable to pay off your debts, then this may be the right loan for you.
Does a debt loan need collateral?
An unsecured debt loan is as much as possible when it comes to smaller amounts. When applying for higher funds, loan companies often require additional collateral in the form of a pledge, mortgage entry or surety.
However, an unsecured debt loan will certainly be subject to high costs to compensate lenders for the risks involved.
Does a person with a bailiff have a chance for a debt relief loan?
Are you afraid that your situation limits the chance of getting a loan? You don’t have to worry too much about it, because in practice you can even get a loan for those in debt with a bailiff taking care of your income.
This financial product was created for people who are in a very difficult situation, which is why it is not worth resigning from applying for a loan too quickly.
Are BIK databases verified with a debt loan?
Although usually loan companies verify the financial situation of customers, a debt loan without checking the bases is possible. Lenders are aware that the financial product is used primarily by customers already registered in the BIK.
Being not on the list of debtors does not close your way to apply for a debt loan. In this situation, first of all, look for a loan without BIK.
Which lenders offer debt relief loans?
Debt loans are not as popular as cash loans or payday loans, but many loan companies offer them. In which companies can you apply for funds to pay off debts?
Good Finance – a consolidation loan
Good Finance offers a consolidation loan that corresponds to a debt loan. In this offer you can get USD 12,000 for 24 months, and this amount can be additionally increased if you pay the first four installments on time.
Good Lender – secured debt loan
Good Lender is a typical debt relief loan with car security. You can take out a loan from 3,000 to 50,000 USD, but for a maximum of 60 months. Along with typical documents, you will have to attach to the application documents regarding the vehicle whose age after adding the loan period cannot be more than 20 years.
Lite bank – a loan with a surety
The debt loan in Lite bank is intended for people who can secure the loan with the signature of the guarantor. Under it, you can borrow up to USD 25,000, but your guarantor must show that he owns property of adequate value.
In what situations should you help with a debt loan?
A debt relief loan is usually the last resort for debtors. It is worth using it if you no longer have any other options to obtain the funds necessary to pay off debts.
If you already have a negative credit history, your obligations are past due, and you have been entered on the list of debtors, a debt loan may be the best solution for you.
However, remember that a debt loan, although it allows you to solve problems with a bailiff and a debt collection company, is a very expensive option. Before you take it out, think carefully whether you will definitely be able to pay off the new liability, because the lack of loan repayment has serious consequences.