Debt consolidation is a loan solution aimed at combating the phenomenon of over – indebtedness. It is basically a grouping of the loans previously requested from one or more banks to face certain expenses in a single loan. http://etuiipadmini2.com/debt-consolidation-payday-loans-who-can-take-advantage/ for a critique
The latter guarantees easier monthly installments than the sum of all the loans taken out at the time, but extended over time and obviously with higher interest rates. Introduced by Law Decree n. 212/2011, debt consolidation is a type of loan that can be accepted or refused by the bank to which you apply. In fact, to obtain a loan of this type, you will need to meet certain requirements and guarantees of creditworthiness will also be required.
The conditions of debt consolidation vary from bank to bank, but can generally be grouped under some common elements. One of the positive sides of the debt consolidation loan is that often additional liquidity can also be disbursed, i.e. an additional sum that can be used to meet basic expenses.
Debt consolidation: requirements
Obtaining a loan for debt consolidation can be a difficult operation , especially if the debt and personal/professional situation is critical. In fact, the bank you are contacting will ask for guarantees before granting the loan.
The requirements generally required are the following:
- be between 18 and 75 years of age;
Economic professional conditions:
- Working seniority not less than 1-2 years;
- Open-ended contract / Demonstrable income for self-employed workers / Being a pensioner.
- Not being subject to foreclosures or protests.
Debt consolidation: documentation to be submitted
In addition, special documentation must be submitted regarding the loans received for which debt consolidation is requested. Basically it is a list in which all the creditors and the sums due but not yet remedied appear. Of particular relevance are the extinguishing accounts , which in fact contain all the sums to be paid to free the person from the obligations towards the previous credit institution.
To this will be added the tax returns of the last 3 years, as well as the certificate on the feasibility of the plan and the list of current expenses guaranteeing his and his family’s livelihood. In the latter case, therefore, the family status certificate must also be presented. On the other hand, entrepreneurs will have to file the accounting records of the past three financial years or bank statements.
As reported in the Law Decree, available in the Official Gazette General Series n. 297 of 22 December 2011, there may be cases where the debtor’s assets or income are not sufficient to guarantee the feasibility of the debt restructuring plan. In these cases, the proposal must be signed by one or more third parties who allow the conferment, even as a guarantee, of sufficient income or assets for the viability of the agreement. In a nutshell, third parties will be required to guarantee the loan requested by the subject.
How does the debt consolidation loan work?
Debt consolidation can be granted only in the event that the loans previously requested and which are to be grouped together in a single solution have the clause for early repayment. In fact, what happens is the very extinction of the loans previously contracted, annexed the possible payment of a penalty, and the procedure is generally carried out by the financial institution that granted the debt consolidation.
The result is that all debts are merged into a single solution, to be repaid monthly through the monthly disbursement of an installment of an amount lower than the total of those due previously. Obviously, this will lead to an extension of the times compared to the previous conditions, as well as higher interest rates , which could be lowered through a mutual debt consolidation, i.e. the granting of the home ownership as a guarantee.
Debt Consolidation: What Benefits?
Thanks to this grouping of loans you will have the opportunity to pay less than what we paid before and above all on a single date. Let’s say that we have contracted three loans whose monthly deadlines differ by a few days from each other. We will have not only three amounts to be paid, but also on three different dates. With the debt consolidation loan, on the other hand, all debts will be grouped into a single installment and a single date.
The most attractive debt consolidation loans of the moment
Thanks to the simulator of Fine Bank you have the opportunity to check which are the most advantageous conditions and offers of the moment and to choose the one that best suits your personal needs. Taking a practical example, as of October 19, 2018, a 40-year-old self-employed worker domiciled in Rome who needs a loan for debt consolidation of 15,000 repayable in 72 months can opt for the solution offered by Lite Lenders Credit, with a monthly installment of 245, 69 dollars APR 6.62% and a preliminary investigation fee of 852.50 dollars.