Does it compensate the reunification of debts?

If debts are eating your savings with each passing month and you can’t have liquidity to carry out any plan, there are some financial resources that can help you get out of trouble.

reunify debts is one of the recommendations of finance experts. reunification of debts consists of unifying all the loans and mortgages that the debtor may have contracted within the same loan.

Thus, a single monthly account will be faced that will be lower than the sum of the installments of the previous loans.

But… is it really interesting? Before taking the step it is very important to know the pros and cons.

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What are the advantages of debt reunification?

Here you can find 3 reasons to trust in reunifying debts:

1. You will get more liquidity

With this resource you will be able to get lower installments with the exception that the amortization period will be lengthened. But this is an advantage, since you will be able to have more liquidity each time the end of the month approaches.

Keep in mind that the conditions you can access will vary greatly from one bank to another, but you can access a monthly fee of up to 50% lower (approximately) compared to the fees you were paying before.

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This greater liquidity can be your oxygen balloon, that may be the only thing you needed to get out of this bad situation.

2. Comfort in terms

Installment financing is a very comfortable resource that gives us the option of buying expensive things in the term that we have chosen. The problem comes when we finance many things: even if the installments are low, when you do the sum you will realize that something is not right. And if you are not careful, this can lead to ruin.

With the reunification of debts you forget to pay the installments in several installments, unifying all the expenses in a single one. You will be able to have a greater forecast of what you have left liquid when the month ends.

But, in addition, they will also unify the means of payment (for example, you can pay with the same bank account) and the same interest rates.

The conditions that are negotiated, in general, are more attractive for the user who wants to change his life.

3. A resource to avoid economic non-payment

There are many factors that can prevent you from meeting your financial obligations. Any unforeseen event, or simply poor money management, can cause you to experience significant difficulties.

The reunification of debts is a kind of wild card that allows you to be up to date with your obligations, avoiding delays in installments. As I’m sure you already know, these delays can be very expensive; Take a look at your contract and you will see what they charge you for each of them.

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You also avoid being registered in the delinquent registers, with the problems that you may encounter to get out of them.

What are the disadvantages of debt reunification?

Although everything seems very positive, the truth is that there are some cons of debt reunification that should also be clear to you to make a balance and make the decision with all the information.

1. You will have to face extra expenses

One of the great problems of debt reunification is that it entails a series of expenses. Most likely, your previous debts have some commission for advance payment that will have to be assumed if you want to move forward.

Similarly, there may also be an opening commission that you will have to pay for the reunification.

Not to forget the classic notarial and registry expenses, very common if, for example, you have to request a mortgage from a bank.

In order not to go blind With any decision, it is very important to have the help of good advice.

2. Debit time is increased

It is true that with the reunification of debts we can reduce our installments, but in exchange for lengthening the repayment term. This means that, even if the interest rate is lower than the one you had before, in the end you will have to pay a greater amount of money for the credit.

The longer the repayment term, the more you end up finally paying for the debt.

Conclusion: Is debt reunification convenient for me?

You will have to weigh all these issues before making the decision about whether debt reunification is right for you or not.

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If you are clear that there are cancellation and opening costs (as well as others) and that the amortization period is going to increase significantly, and you do not see any problems, go ahead.

But if you have done the calculations and the accounts do not work out for you, it may be worth continuing as before and looking for another financing formula.

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