Taking out a credit consolidation allows you to reorganize your loans, settle the amount owed according to your repayment capacity, and also regularize your loans.
Simulate your credit consolidation
Credit Consolidation to Settle Your Loan
Taking out a loan is a quick and practical way to finance your projects. A major life change can put you in a precarious financial situation. Credit consolidation can be a beneficial solution to avoid defaulting on payments and regularizing your loans.
What is Credit Consolidation to Regularize Loans?
Credit consolidation is an operation that involves taking out a new fixed-rate loan to repay the outstanding balance of your credits. In practice, you consolidate all your loans into a single credit and will only have to make one monthly payment.
The new repayment schedule will be determined based on the requested amounts and your debt capacity. This type of operation covers your ongoing loan but can also include secured and unsecured loans like personal loans.
It’s important to know that conditions for the loan application include rather high fees.
These are penalties payable to the bank for the early repayment of your previous loans. It is common to include all fees in the new capital you request to lighten your expenses.
The Advantages of Loan Consolidation
It’s common to renegotiate your contract when interest rates drop or when you have difficulty repaying your loans. Loan consolidation offers a simpler alternative and presents numerous advantages.
You will deal with a single point of contact and can adapt your repayments to your financial situation. Generally, monthly payments are reduced. This usually involves extending the repayment period. As with most long-term credits, interest rates are often low.
By making a single monthly payment, you significantly reduce your expenses. This will allow you to come out of over-indebtedness and free up a more or less substantial cash flow to better manage the end of the month or plan a new project.
Taking out any type of loan gets you recorded in the CCP file of the National Bank of Belgium. The file states the nature of the credit taken and also payment defaults. Regularizing your loans through loan refinancing helps clean up your record.
Studying Your Loan Consolidation
This option is available through a bank or a loan company. It is highly advised to request a study of your case by a broker. Credafin has several lending partners where it can negotiate the best conditions for you.
In any case, it’s preferable to compare the offers from credit organizations before signing. Do not hesitate to simulate your credit consolidation! You will get an idea of the possible repayment schedule and the actual cost of the operation.
You can easily find credit simulators on dedicated websites. They often provide examples to help you understand the principle of loan refinancing. By indicating the desired amount and repayment period, you will get an estimate of the monthly payments and the interest rate value.
Finally, remember to check the legal notices concerning the granting of credit consolidation. The regulatory authority, the SPF Economy, monitors the conditions for obtaining the loan.
