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Debt Consolidation

Discover the 2017 Debt Consolidation Loans.

How debt consolidation works

How debt consolidation works

Those who have obtained more than a loan and consider the costs as well as their management too onerous, in terms of time and money, can benefit from an opportunity designed specifically for those with this credit profile: debt consolidation. But what is it and what are the most affordable debt consolidation loans of 2017? Let’s find out together.

Debt consolidation loans allow you to combine multiple loans into one. It is an intervention that can be performed regardless of the lender, the financing may also have been granted by different banks, and by the type of loan.

Through debt consolidation and refinancing, the client obtains a single, lower monthly installment. It is therefore an ideal solution for those who have to settle debt situations which are rather confusing. Not only. If the applicant deems it necessary, he may also obtain additional liquidity.

In general, debt consolidation loans follow the same guidelines as for personal loans. In fact, it is possible to obtain even quite high sums to be repaid with an amortization plan that can go up to 120 months.

The only difference from personal loans is that debt consolidation loans may have special conditions, specifically reserved for this purpose. As can be seen from the name, the peculiarity of debt consolidation loans is that they are designed for those who wish to pay off the ongoing loans.

These are in fact extinguished by the bank or financial company that provides the loan for consolidation. In this way, all outstanding debts must be repaid in one credit line.

Advantages and disadvantages of consolidating loans

Why use a debt consolidation loan? The main advantage is that by combining all the loans into one, you will only pay one monthly installment. A solution that allows on the one hand to manage debt repayment in a simpler way and on the other to reduce the amount to be paid monthly.

By resorting to a loan for debt consolidation, in fact, there will be a monthly installment less than the sum of the various installments that would have to be repaid otherwise. The possibility for the beneficiary to extend the period for the return of the money due should also be considered.

However, it is necessary to specify that debt consolidation loans also have disadvantages. First of all, the process of preliminary investigation of the financing is rather complex and requires quite long times.

This is because in order to define the feasibility of the loan and the amount that can be financed, it is necessary to be in possession of all the extinct accounts relating to the loans to be consolidated. Counts that are provided by the lenders who provided the various loans.

The disadvantages of debt consolidation loans also include the fact that the debtor loses expenses paid as ancillary costs for previous loans. By opening another loan, in fact, you will have to bear the additional costs and those relating to the preliminary investigation of the case.

We also remind you that if you use consolidation loans to extend the period in which the capital obtained is returned, you will pay more interest. Inevitable consequence of the extension of the amortization plan.

The best consolidation loans of 2017

The best consolidation loans of 2017

But what are the most affordable debt consolidation loans of the moment ? In the list of personal loans we cannot fail to mention Personal Credit of Capital Lender. It is a personal loan that is also suitable for debt consolidation and allows you to obtain amounts ranging from 3 thousand to 30 thousand USD.

As regards the conditions, against a loan request of 15 thousand USD to be repaid in 84 months, Capital Lender offers us a monthly installment of 256.84 USD. The interest rate (Tan) is fixed at 11% while the Taeg stands at 11.63%.

Infra bank’s offer

Infra bank’s debt consolidation loan is also very interesting. The product is called Saldarate and is aimed at all those who have loans in progress and wish to pay a single monthly payment against the disbursement of new liquidity.

The interest rate is fixed and the repayment plan can extend up to 120 months. IBL does not charge fees for the extinction of previous loans. Anyone who has had financial problems in the past can also access the Saldarate loan.

Always remaining in the loan offerings of Infra bank, the institution also offers loans on the assignment of one fifth of the salary or pension. Although it is not a product designed specifically for debt consolidation, it can also be used in this sense.

The assignment of the fifth is in fact a particular form of personal loan which allows to obtain even quite high sums with which to cope with personal or family needs. Not being tied to the purchase of a specific good or service, this type of loan can easily be used to pay off old loans and possibly obtain new liquidity.

Across Lender Compact of Unicredit

Unicredit has also developed a product designed for those who wish to consolidate their debts and need new liquidity. It is Across Lender Compact. The loan allows to obtain sums ranging from 3 thousand to 50 thousand USD to be repaid with an amortization plan that can extend for a maximum of 120 months (minimum duration 36 months).

The Tan is fixed at 10.40%, regardless of the duration of the loan and the amount disbursed. The Taeg can go up to 11.72%.

Post service Italy debt consolidation loan

Among the various offers that we offer you there is also the Post service Italy that with Fine Bank Consolidazione Loan pays sums of up to $ 50 thousand to pool the ongoing loans. The repayment plan can range from 24 to 96 months.

The product is aimed at all holders of Fine Bank Current Account or Ordinary Postal Savings Book. To apply for a Fine Bank Consolidation loan, simply go to any post office, or make an appointment via the Poste.it website.

At the moment the financing is in promotion, until the end of July. The offer concerns only Fine Bank Current Account holders who request an amount of at least 15 thousand USD.

But let’s take an example of the promotional conditions offered by Post service Italy. Those who request, by 31 July 2017, 18 thousand USD to be repaid in 90 months will have to pay a monthly installment of 270.24 USD. The interest rate (Tan) is fixed at 8.40% while the Taeg stands at 8.77%.

How the Consumer Protection Code for Loans works.

To sign a loan agreement, you must know about your rights and duties. When we go to borrow, there are so many rules, bureaucracies and documents that it seems that we have more duties than rights. But, this is not quite the case. The consumer protection code was created precisely to help us understand that banks, like us, also have obligations and must comply with them. Find out what the rules are for those who give and who apply for loans.

The loan must be good for both sides

Who said that only banks need to profit from the loan service? Of course, the goal is to make a profit, but that doesn’t mean you have to lose. You should know that the first step in taking advantage of borrowing is to understand the reason that led you to it. Whether to pay off debts, pay for medical tests or start a business, for example, the important thing is to understand where the money goes.

Depending on the reason, it is better to save money than to borrow. So, if you want to change your cell phone, buy a new bed or travel, for example, avoid putting your feet in your hands and getting into debt. In this case, the ideal is to use the good old method of the piggy bank or study more about financial education to learn how to invest and make your money pay off in the time you need.

Do you already know the reason for the loan? So let’s go to the next step!

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After figuring out why to borrow, it’s time to learn how to use this service in the best way. The consumer protection code has some considerations about it. See what they are:

Right to information: Article 52 says that you have the right to be informed about the CET (Total Effective Cost) of the debt, the annual interest rate, the amount of each installment and the sum of the total debt. The same goes for all fees and charges that are charged. Even though the manager explained everything to you during the conversation, it is necessary that each amount is written in the contract.

Price calculation: Article 3 of Decree 5.903 / 06 talks about the fixing of product prices. It ensures that you have the right to know how interest calculations are done. If the bank charges additions and charges that interfere with the value of the financing or installments, it must provide you with all information about prices. On the website of the Good Lender Bank, it is possible to check the average interest rate in the market.

You will be able to assess whether or not the bank is doing bad and charging too high fees

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So always stay tuned and do nothing in the heat of the moment.

Contract: This document must contain all the details of the contracted service and must be signed by you, the bank representative and witnesses. Don’t forget to take a copy with all signatures home and keep it. Do not sign anything without reading and understanding. If necessary, talk to a lawyer or accountant to get your questions answered. Only sign after you are aware of every detail.

Delay: If you delay payment of installments, the bank may charge you a fine and interest. The amount must be written in the contract. Failure to pay may cause a bank action against you.

Prepayment: The consumer protection code provides for the prepayment of installments of the loan. In this case, the bank must write off the real interest on its debt.

The ideal is to calculate the allowance with the help of an accountant or lawyer.

Loan disapproval: The bank is not required to approve your loan application, even if you do not have a dirty name.

The financial institution, on the other hand, has a duty to inform the reason for the refusal. As you realized, before signing any loan agreement, you must be sure that what was promised is in the contract.