There are some entities that are in charge of grouping your debts with other financial ones and making your life easier when paying your outstanding debt . So, you will have to face a single payment through a debt reunification loan.
What is debt reunification?
These entities are responsible for dealing with the financial institutions with which you have one or more loans; join your debts into one so you only have to pay a fee, so you don’t have to do the paperwork yourself. It involves applying for a loan to pay others.
Paying your debt with a single financial entity entails certain advantages such as:
You will have a single loan with a single monthly payment, your debts are joined.
The interest you will have to face will be less than that of a personal loan.
The monthly fee will be less and more flexible to your economic needs. Although it will increase the return time.
It allows you the possibility of delimiting the repayment term.
In addition, reunifying your loans is usually the last option to pay off and pay off your outstanding debt.
On the contrary, the disadvantages of grouping your debts are:
The interests usually grow . That is, increasing the return time interests are usually higher.
We will be paying more time for the loan and its total cost will be increased.
Our commissions will be higher . When paying your loans with a single entity, you will have to pay cancellation fees, among others.
There is the possibility of losing our home in the case of default.
In short, our total debt increases being more expensive to pay your debt . Reason for which it is important to know every detail of the reunification of our debts to be able to face the payment of the debt that we have with different financial entities.
At the same time, in case of default the housing embargo is very common. Therefore, we must be responsible and aware of the contract being signed.
If you appear on the list of delinquents , it is also possible to collect your loans to pay your debt one. It is an expensive and complicated process but it is possible.
The easiest way is to pay your debt through intermediaries or brokers who are responsible for addressing your different expenses to convert them into a single installment. These financial intermediaries do not really care if we belong to a list of delinquents; Of course, it is often a high cost to use their services. One way to pay your outstanding credit if you are on a list of delinquents.
Therefore, the amount you will have to pay back from the new loan will be the union of all outstanding payments. Some entities offer specific conditions for this type of products.