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
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%.