The most advantageous loan consolidation

Which bank is the most advantageous loan consolidation? The question they ask is how people overdue debts , but also those who are constantly looking for the best deals to save as much as possible. At the outset, we will say that this article will focus on the first group of those people, and that is why we will completely remove the consolidation of the non-bank companies from the article because they cannot say they could help someone out of debt. At the same time, it is not possible to say, “Go to this bank, there is the most advantageous consolidation of loans,” because the offer is large and everything depends on a huge number of aspects – client parameters, number and type of consolidated loans, etc. let’s look at what to look out for and pay attention to.

What is Loan Consolidation?

Put simply, consolidating loans is a unification of loans into one. If you repay several loans, then it is difficult to watch and watch everything, but it is more expensive in a large number of cases . So once you have only one loan, you save. Usually, the consolidation of loans is used for a large number of overdrafts (permission to overdraft current account balances), credit card arrears and smaller consumer loans . Of course, you can consolidate each other and the different types of loans.

How does it work in practice?

At first glance quite simple. You will find an item in your bank’s offer – loan consolidation, and see how much the bank is willing to offer you. If you go into this amount with all your outstanding debts , one step is completed. At the same time, however, it is not possible for you to go to the bank if your current loans have not been repaid for a long time or you are currently without any income. In this case, the bank would probably not help you because you would be too risky a client for her . The most advantageous loan consolidation is to relieve your budget, but it can’t save you if you don’t have repayment resources.

What do you think about loan consolidation?

First and foremost, whether consolidation pays off. Typically, loan consolidation does not pay off for large loans if you have a property available to stop . Then the American mortgage would be more appropriate. At the same time, if you have had problems with repayments in the past and the bank is willing to offer you consolidation, but as a risk client, and the APR therefore exceeds 20%, it will definitely not help you. Interest rates on the most advantageous loan consolidation are expected to be just below 9% , saving on management fees, of course, with only one of several financial products. Further, interest rates can be reduced when collateral. The indisputable advantage of loan consolidation is the ability to borrow more and relieve the family budget . Although this may be another unnecessary debt, so many families on the verge of bankruptcy use this option. At the same time, you should n’t be afraid to ask in the bank . In fact, you will become its clients when consolidating, and therefore the bank is also interested in paying you to the future and not to other financial institutions.

The meaning of debt consolidation, its type and method

In the first place what is debt consolidation, its merits, demerits

Debt consolidation can be done by asking a judicial scrivener or a lawyer, for example, when the company has a debt and is challenged by the payment and his life is extremely difficult.

There are several types of debt consolidation, each of which reduces the burden by reducing the debt or delaying the payment deadline.

As a merit of debt consolidation as mentioned above, it is that it can escape from the debt hell which can not be withdrawn and the deterioration of the quality of life by being deprived by the repayment deadline, and can solve the problem slowly under experts.

As a disadvantage, it is mentioned that debt consolidation was carried out on the credit information of the credit information agency, that is, taking a black list, it becomes impossible to make a credit card for several years or it becomes impossible to borrow money I will.

Moreover, it is disadvantage in debt consolidation etc such that it becomes impossible to get into some occupations and obligation to pay the amount to the guarantor occurs. The merits and demerits are also different depending on the method of debt consolidation. Later, let’s look at that kind.

Types of Typical Debt Consolidation Part 1, Overpayment Claims, Optional Arrangement

An overpayment claim is a procedure to request that the loan company calculate the amount of overpayment that is paid to a loan company or the like, despite the fact that it does not have to be paid, and return it to the loan company. This makes it possible to regain interest paid too much or to reduce debt. On the other hand, not everyone who borrowed money is paying overpayment and can not regain it.

Arbitrary sorting is to reduce the monthly repayment amount by negotiating with the side who lent money such as reduction of debt or resetting of interest, so as to make repayment to the extent that does not interfere with daily life. When asking experts to arbitrarily organize, payment obligation is temporarily suspended, and information collection and calculation etc. are carried out from there.

If the amount of the interest is illegal or gray zone, the principal of the debt itself will decrease, otherwise future interest will be cut. Unlike the self-insolvency described below, there are no occasions where some of the occupations that can be attached are partially restricted.

Types of representative debt consolidation Part 2, Self-bankruptcy, civil rehabilitation

Self-insolvency means that by legally authorizing the court that payment is impossible due to lack of assets, the obligation to pay debts is exempt from legal obligation. Although expensive property such as home and car will be released at all, unlike arbitrary sorting, the existence of debt itself disappears so there is no need to repay anything borrowed so far.

However, the heaviest penalty is imposed in some debt consolidation such as restriction of occupation, prohibition of card use, appearing in the official gazette announcement. Civil rehabilitation means getting debt reduced with approval that the current debt repayment is extremely difficult and dividing it up over several years and repaying it.

Depending on the amount of debt, the reduction ratio will be different, but it may be reduced by up to 1/10. Unlike self-bankruptcy, you can do it while maintaining assets such as housing.

With the above, we have summarized debt consolidation and its kind easily. Since each method has a large content, let’s choose the one that is most suitable for yourself based on the merits and demerits.