The term “grouping of credits” has come to your ears several times? You do not know how this operation consists? We explain everything!
Debt consolidation is a way to collect all its credits in one monthly payment, to facilitate the repayment of a debt.
Thus, after obtaining the debt consolidation, it will no longer be necessary to make several payments to various creditors, since you will have to repay your monthly payment with a single creditor.
This payment strategy involves obtaining a new loan to cover all of your debts. Debt consolidation simplifies your monthly repayments in one payment. Debt consolidation is, therefore, a process that converts all of your monthly repayments into one payment that would be less than the sum of all your current monthly payments, hence the term consolidate or unify because it aggregates all your debts in one!
This repayment solution is for individuals with several credits, such as consumer credit, a mortgage, or even to fill a more or less important discovery. Having accumulated a multitude of credits, it may happen that a monthly budget is not large enough to offset the daily expenses or to achieve one or more projects.
The pooling of loans is then the appropriate solution to update its finances while benefiting from repayments adapted to its current financial situation.
If you have a house or other valuable property to use as collateral, it may turn out that lenders can offer monthly payments at a lower interest rate. However, it should be noted that if you use your property as collateral, you will lose your real estate, in case of nonpayment of the purchase of credit contracted.
Although consolidation of credit allows for greater purchasing power, the repayment of debt will take place over a longer period, which results in an increase in the total amount paid during the year. the duration of the loan.
Paying more than the minimum payment can help you repay the loan faster!
The desire to obtain material things, or to finance a trip, a wedding or any other occasion, has contributed to the financial problems that many people encounter.
Fortunately, effective solutions to manage its finances, to meet its monthly expenses, are offered by various banks or agencies specializing in credit redemption.
Your budget is rebalanced in the long term, your monthly payments decrease resulting in a return to normal of your debt ratio… You also avoid the filing of an over-indebtedness file and the registration at the Belgibank!
The debts are mainly due to uncontrolled and impulsive purchases made when the person could not afford them… It is important to get rid of your debts because they can significantly affect your finances for years to come.