When we have debts with different banks, savings banks, among other financial entities, it can sometimes be problematic for us to comply with the timely payment of installments. In this situation, among many others, it is convenient to opt for the debt purchase.
Advantages and disadvantages of buying debt
In this publication we will talk about what are the advantages and disadvantages of debt purchase so you can decide if this is the best option for you.
Advantages of consolidating your debts
The advantages of debt consolidation can be summarized in two: reduction of interest and commissions and an improvement in the organization of debt payment.
- Interest payment reduction – By unifying your debts, you pay a single interest for them and not the interest on each debt individually. The cost of the commissions of each of the banks is also reduced, since you will only pay the commission of the bank that was in charge of buying your debt.
- You will improve the order in the payment of your debts – Thanks to the purchase of debt there will be a single deadline for the payment of all your debts. So you won’t have to write down different dates on your calendar, running the risk of forgetting them and paying penalties.
Disadvantages of consolidating your debts
But not everything is as good as it seems, there are also some disadvantages of debt consolidation, for example:
- Penalties for extra payments or prepayments – It is important that you read the fine print of the contract you sign for the purchase of your debt. In some cases there may be penalties for paying in advance or paying more money in each installment.
Opt for the AlDía debt settlement program
If you have debts, we recommend that, instead of debt consolidation, you opt for the AlDía debt settlement plan. Thanks to this program, if you have past due debts for more than 60 days and the commitment to solve your debt, we can get together with a group of people who are in the same situation as you in order to collectively negotiate their debts.
In this way we can obtain more benefits for the payment of the total. After this, you will only have to save monthly, a fixed amount to a protected account to generate your own individual fund that allows you to cancel your debt.
You want to know more? Contact us so that one of our advisors can help you shortly!