Debt Consolidation: When And Why To Choose It

If you are struggling with the repayment of multiple installments, debt consolidation can be a great way to close all current loans and facilitate the management of residual debt through a single solution. Gian Carzo, mortgage and investment expert, explains what to do.

Debt consolidation 

Debt consolidation loan

Debt consolidation is an unfinished loan solution that allows the debtor to merge multiple loans that are already in progress into a single monthly installment. In fact it may happen that to buy the car the customer has opened a loan, which requires a personal loan to pay for an unexpected expense, or to purchase a household appliance, a specific loan is activated. The management, over the years, of more financing solutions may not always be simple and above all convenient.

If you are struggling with repaying multiple installments, then debt consolidation can be a great way to close all current loans and facilitate residual debt management through a single solution. This means one installment, one rate and one amortization plan. Reviewing the duration of the single loan, the consumer also obtains a lower overall rate and above all the transfer of various charges on his / her c / c. The conditions of the new loan are agreed upon during the negotiation between the customer and the institution that provides the debt consolidation solution. At the time of stipulation, all the contractual factors can be analyzed in detail, including the interest rate regime and the best repayment plan for the new loan.

Debt consolidation is a tool available to all types of workers, both persons employed under an employment contract or self-employed, able to certify the regular course of active loans. This formula of access to credit, on the other hand, cannot be addressed to protested persons.

For the request, the debtor is required to deliver to the lending institution a valid identity document, the CUD or form 730, a copy of the last pay slip and the documentation relating to the various loans in progress. The bank expresses a first feasibility opinion, checks the creditworthiness of the applicant and decides on the disbursement of the loan.