Consolidating your debts allows you to gather all your financial obligations into one. In this way, you will have a single account payable per month, making your planning easier.
Choose the best way to consolidate your debt
Any duly authorized and registered financial institution can help you refinance your debts. If you want to request consolidation of your debts, you can buy from dedebt.
The biggest difference in the purchase of a portfolio with other alternatives of this type is that a financial institution of which you are not a customer can pay the debt with the bank that does have obligations.
This allows you now to have a unique debt with them, leaving behind your relationship with the current bank.
Advantages of debt consolidation:
- Simplify your payments to only one month.
- You get benefits such as a lower interest rate or extended payment term.
When is it necessary to consolidate your debts?
- If you have different types of debts and you find it difficult to organize between many installments or payment dates.
- You cannot pay the full amount of fees with your current budget.
- You want to extend the term or pay lower fees.
- If you need to change the payment terms, such as interest rates.
Difference between consolidating and refinancing debts
When refinancing, the bank may change some conditions (such as interest rate or term) to achieve lower installments that are more comfortable to pay.
However, it does not unite them in a single payment, so you will have to continue paying each one separately.
How to perform debt consolidation?
- Meet the products offered by financial institutions.
- Present your identification documents, account statements, proof of income, credit history and any other that the financial institution deems necessary.
- They will review your case.
- They will define a proposal that can adapt to your current payment capacity.
- If you accept that proposal, now your debt will be defined by the new conditions.
However, experts advise analyzing your current economic situation to avoid negative situations, such as over-indebtedness.
The recommendations are:
- Review debts and expenses. Make a list of your obligations and define each of them by answering questions such as:
- Who do I owe, and how much?
- Amount to pay monthly?
- What is my payment term?
- What annual effective interest rate does it charge me?
- Identify what type of debt it is. Personal loans, credit cards, credit with vehicle guarantee, others.
This will help you have a clearer picture and compare it with your budget when organizing payments.
- Replay your budget. If you can reduce expenses and better manage your budget, design a plan that will help you get out of those debts with the current conditions, giving them a priority. It is important that you do not assume any more financial commitments.
Debts with your credit cards ?: Uniform them with a financial institution
Debts with credit cards are the most common among users. It is very easy to get out of control and spend more money than we have. If you have different credit cards to which you owe money, consider consolidating this type of debt exclusively into a single loan.
This means that they lend you money to pay those debts and now you will only have a single installment, corresponding to the loan, on your earrings of the month.
How to avoid more debts on the credit card?
- Do not use them unless necessary: as in commodities, emergencies or accidents when you have no money.
- Do not fall for impulse purchases: anything outside the planned budget.
- Pay your fees on time and prevent debt from growing due to default interests.