The financial situation in the country leaves much to be desired, for this reason, many citizens have problems paying off previously issued loans. Some people, despite the difficulties in the economy, continue to apply to banks for new loans and as a result drive themselves into debt, with the payment of which they can not always cope.
Many people today have two, three, or even more loans at the same time. Servicing such loans is expensive, and there are more problems with multiple loans in different banks. It is for these reasons that such borrowers wonder about the possibility of combining several credit debts into one.
Why consolidate debt?
Borrowers often resort to re-lending with simultaneous consolidation of several loans into one in order to facilitate their payment, that is, not to be confused about the amount of payments and the dates of their payment. But this is not the only advantage of the re-crediting procedure. If you try hard, you can always find a financial organization that will offer a person very favorable credit terms that allow you to slightly reduce overpayment on loans.
During such a re-loan, the borrower can agree with the selected lender, which may be one of his old banks or a new financial institution, to extend the loan period, if you want to reduce the amount of mandatory payment. You can also choose shorter loan terms, which will significantly reduce the overpayment of interest.
The option of re-crediting and merging can become a real salvation for people who issued loans in foreign currency, and their exchange rate began to rise rapidly. There are also situations when a person urgently needs money, which is why he has to agree to a loan deal with very unfavorable interest rates. In the case of re-crediting, it can significantly reduce the annual interest rate.
How do I combine multiple loans?
There are no special difficulties in this procedure. First of all, you need to find a financial organization that provides re-lending services and makes an application. Such a borrower will need to collect the following documents: a certificate of residual debt for each loan, loan agreements with other financial organizations, payment schedules for existing loans, and documents that the bank can use to determine its solvency. When the financial institution agrees to satisfy the request, it signs a new loan agreement with the client, after which it is engaged in paying off all his old debts on the loan.
Features of re-crediting
It is more profitable for financial organizations to refinance large loans, but it is almost always possible to find a bank that agrees to combine several consumer loans. This lender accepts the transaction if the total debt on the client’s loan is no more than one million. This loan is issued for a period of up to five years at a fairly profitable annual interest rate. Loan terms, maximum amounts, and interest rates may differ from one financial institution to another.