How much debt actually will be reduced by debt consolidation?
Depending on the type of debt consolidation chosen, the rate of decrease in debt is different
Debt consolidation which is a procedure that can be released from the life suffering from debt by reducing debt or delaying payment. It is something you should do without hesitation when payment fails to catch up or payment can not be done in the first place.
Generally, if the debt exceeds one-third of the annual income, it is considered as an indicator for starting one debt consolidation. However, even if it says a sort of debt consolidation, there are several types in it.
And the scenes used are different, and the rate of decrease of debt is also different. Three times which are the main axis of debt consolidation such as arbitrary sorting and civil rehabilitation, self-bankruptcy, and this is also one of debt consolidation, and recently each of I would like to take a look at what kind of structure and how much debt reduction effect is achieved, and how there is a difference with other people.
Overpaid money claim to recover lost amount, arbitrary arrangement to be reduced to some extent.
An overpayment claim is a procedure to calculate interests etc. that have been paid too much despite the fact that you do not have to pay in the process of repaying debt and make a request for payment to the lender.
If overpaid money is found and it comes back to you, debt decreases greatly, or there are things that some money comes back as well as complete disappearance of debt. However, strictly speaking, debt itself is not reduced, because of the money you have paid too far.
Arbitrary sorting is to negotiate direct debt reduction and interest rate reconfiguration with the lenders without reducing the court so that the monthly repayment amount can be reduced and repayment within a range that does not interfere with life is.
The scope without hindrance differs depending on the person, but in arbitrary sorting there is no court intervention in the exchange, so the lender side makes a considerable strong argument and as a result of the discussion it is not so much that the debt is not reduced so much There are many.
Civil revitalization that is greatly reduced, completely missing personal bankruptcy
Civil rehabilitation means to allow the payment of debt through the court, to reduce the debt and make it an amount that can be paid in three to five years in a reasonable extent from the person’s income . Because it will not amount to three to five years or more of a part of the income, a considerable reduction will be made depending on the person.
Self-insolvency means that the court acknowledges that there is no ability to pay debts and exempts the obligation to pay debts in exchange for forfeiting all expensive assets such as cars and houses. It is almost synonymous with depletion of debts and the rate of decrease in debt is the largest.
As we have stated so far, how much debt is reduced depends on which one you choose during debt consolidation. In that case, there may be some thought that it would be better to choose self-insolvency with the largest decreasing, but because they each have different merits and demerits, there is no need to choose which one. In debt consolidation it is important to say that the debt reduction ratio is one, but it is only one factor.