More and more people have numerous financing assets. Debt consolidation was born with the aim of simplifying the economic management thanks to a single installment with more advantageous conditions.
What is debt consolidation?
In 2018, requests for debt consolidation loans increased thanks to its advantages. The debt consolidation allows precisely to control the active loans, paying a single monthly installment, delaying the repayment terms. In this way the monthly payment is cheaper because the repayment times are extended up to a maximum of 120 months even if the interest rate could increase.
A further advantage of debt consolidation is the possibility of requesting an increase in liquidity without the need to justify the request.
To use this service, you must submit the request to the credit institution that will replace the active loans, with a new one equal to the sum of the previous ones.
Like all loans, even debt consolidation requires approval that depends on the guarantees available to the applicant.
Debt consolidation has many advantages, but on the other hand, the applicant must again bear the costs of the preliminary investigation (ie the costs of opening the file) as it is in effect a new loan. In addition, many banks require guarantees such as surety, unlike standard loans.
Requirements to request it?
It is necessary to analyze your working situation and the ways in which the active loans have been repaid, or to make sure that all the previous debts have been repaid in due time, otherwise it will not be possible to obtain debt consolidation.