People suffocated by monthly payments on their numerous debts often wonder: can loans be reunified? The answer is yes .
What is debt reunification
This procedure allows you to group all active loans and mortgages into a single loan . In this way, you only have to pay a monthly fee, renegotiated; and with an amount lower than the sum of all the fees that were required to be assumed.
Consequently, the financial requirement that is borne each month is reduced, optimized and simplified. Well, reunification makes it possible to respond to a single creditor . In return, the repayment period increases and, therefore, also the total cost of the full payment, because the interest increases.
Who can manage a loan reunification
People who see an opportunity in this formula have two options. Go to companies specialized in this activity, known as mediators . Or negotiate with the bank with which they have contracted most of their outstanding debts.
What is the acceptance process?
The procedure is similar to that of any other credit application. The company or entity collects the information it needs, studies the specific case and assesses which and of what nature these debts are; what interest is being paid, what repayment terms they have and what assets and economic income the debtor has. Analyzing everything, the operation will be approved or not and the renewed payment conditions will be defined .
If the initiative comes to fruition, all the debts will be canceled and they will be reunited in a single new loan. Which will allow you to comply with all these payment obligations in a more rational and affordable way; with a lower monthly fee .
The dark side of loan reunification
This formula is a possibility, but in no case should it be the only lifeline. Because it can cause more damage to its beneficiaries : the repayment periods increase greatly and the interests are usually higher. In general, the initial fees are lower, but they increase progressively. What sometimes produces a return or a worsening of the critical initial situation. In any case, although the monthly payments decrease, the total debt increases .
Types of reunifications
There are two main types: non-mortgage and mortgage .
The first are, in reality, a new personal loan for the value of all the debts. If you opt for them, you also have to consider the expenses and costs of the new loan and the cancellations. Often, they require the figure of a guarantor. Mortgages are the most frequent and use the home owned by the contractor as a guarantee of payment; as long as it is not already mortgaged.
Can loans be reunified? , was the question. Yes. The question now is: does it really matter? If you are looking for financing, look no further, compare the best loans in Ideal Loans .