Consolidation is a very modern word recently. Banks understand that many clients are no longer attracted to the loan because of the high indebtedness of the people. So they call for consolidation. And what is this consolidation?
Loan consolidation is a banking operation that merges all bank and non-bank loans into a single loan. The debtor then repays only one creditor.
Doesn’t it sound wonderful? Certainly you have met with advertising several times, claiming that consolidation will make life easier for you and your wallet. You will be repaying for smaller amounts, you have the opportunity to take cash and moreover you will receive many bonuses. But nothing is free!
Beware of consolidation
If you have more loans and are thinking about consolidating, don’t be fooled by marketing passwords. When the bank pays off all your “disadvantageous” loans and debts, what does it earn?
Consolidation may reduce the amount of the installment, but will increase your overall debt.
In addition, the conditions for obtaining consolidation are quite strict because consolidation is in other words a loan! Below we describe a few cases where you can forget about consolidation.
When to avoid consolidation?
- Clients assessed as risky by the bank are at a disadvantage and there is no exception when the APR (annual percentage rate of charge) can reach up to 20%. In these cases, a classic loan is also preferable.
- If you are in the borrower’s register, you will find it difficult to find a bank that would consolidate for you.
- In the case of high debts and the possibility of guaranteeing real estate, the US mortgage is more advantageous. However, beware of usurers and unscrupulous companies.
- If you have low incomes (similar terms to bank loans).
For Debts With First Deductive
Our goal is to save borrowers as much money as possible and help them out of a difficult financial situation. For that:
contact our specialists who will advise you free of charge and recalculate how much your consolidation would cost you. In addition, they will also suggest an optimal solution for your situation.
And how do we help you?
Management of commitments
It is a unique service where you leave all your concerns and commitments to our certified debt managers. They then take care of all administrative matters, negotiate better terms with creditors and give you legal assistance.
More about commitment management
Under specific conditions, personal bankruptcy can be chosen for debt relief (reduction of financial burden). Personal bankruptcy, so-called. DEBTING is an institution that must be preceded by bankruptcy and the debtor must meet a number of conditions. One of them is to have a relatively high amount of fees.
More about personal bankruptcy
Every client has individual and specific problems, so we always look for and design tailor-made solutions that are most convenient for you. Call the infoline: 0800 221 331 or fill out the application online .