MonthAugust 2019

Bank loans, personal loans and Reunify or refinance debts and loans

The unstoppable rise in job destruction, mortgage payments and the maintenance of high-rate consumption have pushed the ability of many families to meet their financial and economic commitments to the limit. It is estimated that the savings will be only 7.8% of the available family income.

 

Advantages of debt reunification

Advantages of debt reunification

  • A single monthly payment fee.
  • Monthly fee to pay significantly lower.
  • Reduction of interests in comparison with other consumer financial products.
    Alternative valid against an imminent seizure or auction situation.
  • Way to obtain liquidity with long-term amortizations.

 

Disadvantages to take into account before a reunification or grouping of debts.

Disadvantages to take into account before a reunification or grouping of debts.

  • Considerable increase in the term of the new reunified mortgage loan.
  • Greater interest settlement as the credit period increases.
  • The high payment of commissions towards intermediaries or brokers of financial products.
  • Lack of foresight when exhausting a resource that always offers us a good alternative.

 

The need to reunify or group your debts

The need to reunify or group your debts

At present, there are families that, receiving a net income of 1,400 euros, have to pay more than 1,200 euros every month between consumer loans, the letter of the car and the mortgage. An unsustainable situation. The financial formula that we recommend from Albayno Credit Real is the consolidation of debts, a financial instrument that consists of grouping all the loans they have into one, of a mortgage type.

 

But is it really a recommended financial option or is it just a desperate solution to get by?

But is it really a recommended financial option or is it just a desperate solution to get by?

In general, this formula offers a good alternative for families who have exhausted their credit access or have seen their income fall. The drawback is that, although lower interest and fees are paid, the holders will bear the new credit for a longer time.

The main feature of debt consolidation is that, by adopting the mortgage loan genealogy, the new mortgage loan is granted for a longer term and with lower interest than personal loans or consumer loans. The final indebtedness will also be altered upwards, since in addition to canceling the debts, the holder of the loans must pay the expenses of the new operation and will have to be paying for longer. However, monthly payment ends up paying considerably less.

The reunification allows to change personal or consumer loans applied over 9%, or the so-called fast loans to 26%, for a single loan, of mortgage type, at an interest of around 3.50%