There are many advertisements that can be seen today, by banks and credit institutions, which offer to reduce the monthly installment of loans through the reunification of debts. The premise on which they are based is that of gathering or gathering everything that a specific person owes in a single entity, so that the quota that is derived is less.
The product of this service is oriented to respond to the needs posed by those individuals who face significant difficulties in dealing with their debts. On many occasions, mortgages accumulate, as well as personal loans, interest on credit cards or other debts that may be too much for an individual who, at the time of requesting them, did not perform his calculations well and is in a borderline situation This can lead to the person in question being in debt to several creditors.
Debt reunification can be a great solution
This mechanism offers the client the possibility of responding to a creditor only of the total debt owed at that time. In addition, the process of renegotiating the loan conditions will be much more feasible, being able to obtain more interesting installments than if they were many creditors. However, it is necessary to highlight that sometimes this product could create even more damage to those customers who are in a financially weak situation.
The reunification of debts can give rise to more extended repayment periods or with higher interests than those that would be paid to the first or original creditors. It is very common that in the first months after reunification the cost decreases, giving the debtor a small mattress, but as the years go by, the situation reverses and returns to the situation at the beginning. Therefore, you have to know the entire process to perform it correctly. As mentioned, there are several reunification formulas that we can find today. All of them are used by both credit institutions and companies specialized in reunification. Below we show some of the most important. Whatever your choice, reuniting debts with ASNEF is a safe bet:
Personal loans (reuniting debts without a mortgage) is one of the most used methods for reunifying debts. In this case, one of the products must be requested for the cost or value of all the debts accumulated at that time. With this, it would be enough to terminate all the loans that the individual in question had previously subscribed. For this, the client must assume, as is reasonable, the total cost of the new loan, with his new interests. In addition, the conditions of those who were to be liquidated should be reviewed soon.
There are many financial products that involve cancellation or subrogation expenses, so there is an obligation by contract to respond to the interests that the client has promised to pay in those cases in which it was previously canceled. Therefore, it is possible that when regrouping the debt, the cost to be paid will increase significantly, given that the additional expenses of the cancellation interest must be added. This formula is usually accepted in small debts, and canceled in those that have a greater value. There are very few credit institutions that can lend money to a particular client who is not in possession of properties and who is also in difficulty to be able to pay previous loans. Therefore, reuniting debts without a mortgage is a tool that must be taken into account.
Reunify debts with a guarantor
If there is a guarantor, this situation changes radically. If a third person is willing to respond, with their income and assets, to the debts of the debtor, the bank can change its opinion drastically.
For this, the guarantor must present a magnificent solvency. However, the risks arising from this operation also have risks, since there is a possibility that in some month the agreed fee cannot be met, and the debtor would have the right to act against the guarantor.
This is, without a doubt, the most used mechanism that individuals use to regroup their debts. This takes advantage of an opportunity offered by the Spanish housing market, as 84% of Spaniards are the owner of the home where they reside. This fact offers the possibility that many individuals can offer their home as a guarantee of payment in those extreme cases in which the monthly payment of the debt cannot be met.
In these cases, the process is based on the request for a mortgage using a home that is owned by the debtor. With the amount obtained after this process, the debts that may have been acquired by the other means are canceled. This is based on the fact that the banks are in the assurance that, if the client could not cope with these payments, they could use the home as collateral.
All mortgages generally have better conditions with the debtor than personal or consumer loans
Therefore, this option will only be available for those cases in which the debtor owns a home on property and does not have a mortgage in advance. If the remaining mortgage is very small, this mechanism could also be adopted. It is extremely interesting since the payment conditions improve substantially. However, special attention will have to be paid to expenses that may be created additionally.
When planning the details of the operation, you should not only take into account the expenses that are derived from personal loans, but all those that entail the constitution of a mortgage, such as the registration of the property, the notary, the agency or taxes. In addition there are other compulsory loans, such as home insurance, or life insurance (mandatory in many cases). In summary, this process of debt reunification has the capacity to achieve much more advantageous conditions when dealing with debts. However, there are cases in which the total amount could be increased. The final interest and additional charges of the contracted mortgage may differ greatly depending on the bank in which the operation is performed.
Gather debts with personal loans and mortgages
If what is intended to be requested is a personal loan (to reunify loans), it may be possible that the client is interested in making it directly, without the need to resort to third parties. There are tools today, such as the personal loan comparator, which allow you to compare numerous offers from different banks and other credit institutions.
If you choose to reunify debts through a mortgage loan, there are also mortgage comparator tools. They can analyze the conditions and interests of banks. Gathering loans is a tool that can provide you with great money savings.