Concepts of Loan consolidation
Loan consolidation. The concept that haunts a considerable portion of borrowers, or hopefully they will not have to resort to it.
This is one of the possible rescue mechanisms if you are unable to repay your loans. On the other hand, it should be mentioned at the outset that it is not appropriate to be afraid of it in any way and avoid it at any cost. If you just get into a situation where you don’t have enough resources to pay off your obligations, you have to solve it somehow and the worst thing you can do is stop communicating with the bank and doing that you don’t. Loan consolidation is probably one of the options offered to you by the bank, or it can also be outsourced. It is precisely because the consolidation of credit can be understood in two ways , we divide this article into two.
Bank loan consolidation
In the beginning of this section, let’s just say that we called it “the bank,” but it can of course also happen to you in a non-bank company. But it is not so common because these institutions go with much higher frequency in court and subsequent executions to remove troubled clients from their portfolio. But if you owe it to the bank and start repayment problems (or just expect them to start dealing with it), they will try to find a solution with you , even though it will be a pretty fairy tale to most clients. Of course, it is more advantageous for her to try to agree with you to restructure the loan and you will repay it, rather than bringing everything to court for complex processes (especially time).
Bank loan consolidation basically means that you will try to agree on a new form of repayment schedule , a different amount of installments, short-term deferral before you get funds, etc. Simply change the structure of the loan, as the name implies. It all depends on the bank and especially on the specific case of the client . It is clear that the consolidation of the loan will be easier with a businessman who is just waiting for a paid invoice, and a person who has completely lost his job and is not insured.
In any case, do not stop communicating with the bank and solve any problem with it. When you start to do a dead beetle, the bank loses patience with you, usually after three months .
Loan consolidation by external company
The second option to solve the repayment problem is to restructure the loan by an external company. It is mainly used by companies , but nowhere is it written that a natural person could not do it. In practice, a specialized company will find the most advantageous loan for a fee , negotiate it, pay the current one, and then you will pay a new one, more profitable. At the same time, it can temporarily help you with repayment, provide consultations, unite more loans , etc. Of course, this loan consolidation will cost something. At the same time, be careful not only to get into a debt spiral.