Submitting a credit consolidation application allows you to:
- significantly reduce your monthly expenses
- get out of debt overload
- benefit from a more advantageous annual percentage rate
- free up cash flow for new projects
- manage your budget with greater ease
Simulate your credit consolidation online
Regarding the drawbacks of applying for credit consolidation, they are few. In reality, the only downside is the increase in the amount you owe. Credit consolidation allows you to spread repayments over a longer period.
When fees are included, the assigned credit is more expensive than the outstanding balance on the initial credits. However, you should not lose sight of the fact that your expenses are significantly reduced, ensuring optimal peace of mind.
Who is the target audience for credit consolidation applications?
Consolidation is mainly attractive if you have two or more personal loans ongoing. The aim is to address repayment difficulties through credit consolidation at a better rate. Note that consolidation can include a mortgage, car loan, home loan, credit card overdrafts, and more.
A banking advisor will help assess your situation to determine if consolidation is the best option or if there are other ways to alleviate your difficulties.
Also, note that it is possible to restructure a single loan, whether a mortgage or not. In this case, the objective is to renegotiate the rate and/or to request that the repayment period be extended. This leads to reduced monthly payments and minimizes the risk of being listed for default at the national bank.
Simulate and compare options
Online simulation is simple and free. Calculate the total remaining on your current loans and specify the new term over which you would like to settle them. You will then have a preview of your future monthly payment.
For more precision, it is advisable to compare several consolidation offers. Pay attention to rates and monthly payments. Also, inquire about additional fees (file constitution, insurance, penalties…).
If the new contract is offered under the same conditions as the old one, consolidation is not advantageous. If you manage to save, the offer warrants your attention.
Be vigilant about the details when you embark on a credit consolidation simulation in Belgium. The same applies to comparisons, which should be supplemented by personalized advice to help you make your decision.
