Discover more information about debt and consolidation
After years of crisis that have seen, for a long period, the implementation of restrictive policies by banks and financial companies with respect to the granting of loans in general, fortunately for some time now we have witnessed a contrary trend.
In fact, the range of loans available today for different purposes is really wide, and so there always seems to be someone available to grant us a loan to help us carry out our projects, small or large, without particular formalities. Just think of the countless proposals, now daily, by the various operators in the sector, all aimed at anticipating all our possible financial needs.
Although this can be a positive and even reassuring thing, on the other hand, this ease of access to credit, at times, can create situations of excessive debt or in any case difficulty in serenely coping with the monthly commitments undertaken.
In such cases, it may be appropriate to evaluate the possibility of resorting to a debt consolidation operation, with the assistance of a financial agent. Do it now!
Debt consolidation is a financing operation that allows the early repayment of all ongoing commitments, on a specific date, with the aim of bringing together all the installments in a single monthly installment, thus reducing the overall monthly exposure of the applicant and also providing, when possible, additional liquidity.
In general, this operation is proposed for medium / long durations, in order to allow the payment of a “convenient” installment, but this also depends on the amounts of the commitments to be paid.
How can consolidation be achieved?
There are several loan solutions that can lend themselves for this purpose:
- Mortgage loan
- Personal loan
- Employee loans
- Payment delegation
These are all valid tools, but the evaluation with respect to the most suitable solution must be made taking into consideration the different elements related to the personal situation of the applicant, such as, for example, the number of monthly commitments, the respective residuals to be extinguished, age and income of the concerned, as well as the regularity of payments.
But which financing to choose for debt consolidation?
The choice certainly requires the advice of a qualified agent who, having examined all the elements of the request, will be able to understand, not only which financing best corresponds to the need for consolidation, but also to direct the applicant towards the most feasible solution.
Without going into too technical issues related to the characteristics that each form of financing presents, let’s briefly examine together the main pros and cons of each possible solution.
The mortgage loan, for example, can be a good choice when the amounts to be paid out are very high because, with this operation, durations beyond 10 years are possible with much lower average rates than those of a common loan. However, it is an often complex operation which, providing the mortgage as collateral, will be available only to those who own a property.
The personal loan, on the other hand, is a loan that cannot go beyond 10 years of duration, therefore, it is only available if the size of the commitments is such as to make this option convenient.
In fact, it should always be borne in mind that the main purpose of debt consolidation remains a significant reduction in the applicant’s monthly exposure!
As an example, if the total of the installments linked to the commitments to be settled is equal to $ 600.00, it will not make much sense to propose a consolidation operation that reduces this exposure to $ 500.00. Furthermore, given the duration and extent of the commitment it entails, it often happens that additional guarantees may be required to grant it, such as, for example, a guarantor, and this is not always possible.
Finally, in the case of the Transfer of the Fifth and the Delegation of payment, we are talking about loans that provide for the payment method of the installments to be directly retained in the paycheck. With durations of up to 10 years. It is precisely this peculiarity that makes these two types of loans safe for the lending company which, in general, applies very competitive conditions compared to a common personal loan. Furthermore, the signature of guarantors is never required, regardless of the amount requested and the duration. financing.