Have you heard the term “credit consolidation” multiple times? Are you unsure what this process entails? Credafin is here to explain everything you need to know! Here’s the credit consolidation explained.
Simulate your credit consolidation
Definition of credit consolidation explanation
Do you have multiple loans in progress? Credit consolidation is a method of combining all your loans into a single monthly payment, making it easier to pay off a debt.
Also known as “debt restructuring”, “credit restructuring”, or more commonly “credit buyback”. Credit consolidation can be an effective way to manage your finances optimally.
Thus, once a credit consolidation is obtained, it will no longer be necessary to make multiple payments to various creditors. You will only have to repay your monthly installment to a single creditor.
This payment strategy involves acquiring a new loan to cover all your debts.
A credit consolidation simplifies your monthly payments into one.
Credit consolidation is therefore a process that allows you to convert all your monthly repayments into one payment, which would be lower than the sum of all your current monthly payments! Hence the term consolidate or unify, as it gathers all your debts into one.
Who is credit consolidation for?
This repayment solution is intended for individuals with several loans, such as personal loans, mortgages, or even to cover a more or less significant overdraft.
Having accumulated a multitude of loans, it may happen that a monthly budget is not sufficient to meet daily expenses or to carry out one or more projects.
Credit consolidation is then the suitable solution to update your finances! All while benefiting from payments adapted to your current financial situation.
Simulate your credit consolidation
How to negotiate the rate of a credit consolidation?
If you have a house or other valuable assets to use as collateral, it may be that lenders offer installments at a more advantageous interest rate.
However, it should be noted that if you use your property as collateral, you risk losing your property in case of non-repayment of the contracted credit consolidation.
Although credit consolidation allows for increased purchasing power, the repayment of a debt will be over a longer period! This results in an increase in the total amount paid over the course of the loan period.
Paying more than the minimum payment can help you repay the loan more quickly!
Credit consolidation: a solution to save your finances!
The desire to acquire material goods or to finance a trip, a wedding, or other occasions has contributed to the financial problems that many people face.
Fortunately, effective solutions to manage finances and meet monthly expenses are offered by various banking establishments and agencies specializing in credit consolidations.
Your budget is rebalanced in the long run, your monthly payments decrease, leading to a normalization of your debt ratio…. You also avoid the submission of an over-indebtedness file and listing with the National Bank of Belgium!
Debts mainly occur due to uncontrolled and impulsive purchases made when the person could not afford them…
It is important to eliminate your debts as they can significantly harm your finances for many years.
