Life’s unpredictabilities, such as losing a job, can make it particularly challenging to meet the repayment schedules of our various loans. In Belgium, the number of people unable to repay their loans due to financial difficulties is relatively high.
Simulate your loan consolidation
Indeed, statistics from the Central Credit Register of the National Bank of Belgium reveal that nearly 370,000 people face such challenges. In this regard, loan consolidation proves to be an especially effective solution for getting out of such predicaments. But how does a loan consolidation work? What are its advantages? How can you benefit from the best interest rates on the market? These are some of the questions this article aims to answer as clearly as possible.
Loan consolidation: How it works
As the name suggests, loan consolidation, also known as loan buyback, is a financial technique that involves combining multiple loans into one. The idea is to achieve financial stability by obtaining new repayment terms and deadlines, all while now dealing with just one single point of contact.
The operation is straightforward. When you determine that your income no longer allows you to pay your installments without compromising your daily life, you can approach your banker or any other authorized institution in Belgium. To do this, you compile a dossier including a list of your current loans and a detailed description of your income. The aim here is to allow you to renegotiate the terms of your loans. At the end of this process, you have only one loan to repay over an extended period. Through the credit buyback, you also have the possibility to settle a loan earlier than planned by anticipating your repayments.
Simulate your loan consolidation
