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As a merit of debt consolidation as mentioned above, it is that it can escape from the debt hell which can not be withdrawn and the deterioration of the quality of life by being deprived by the repayment deadline, and can solve the problem slowly under experts.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