If we accumulate debts that involve a periodic payment, an alternative that we can consider is to unify those payments in a single installment. A critique at http://paydayconsolidationcompanies.com/payday-loan-consolidation-program-visit-payday-loan-debt-consolidation-companies/
This operation is known as a debt reunification loan, and it is one of the most requested loans currently: dealing with the payment of the mortgage, the children’s education loan, credit card … these are debts that we can unify Through this option, taking into account that these types of loans have more demanding conditions than the rest. Next, we will explain how it works and what are the best loans for debt reunification.
Loans to reunify debts, what do they consist of?
Applying for a loan to reunify debts allows you to group credits, mortgages and credit card purchases into a single installment. By unifying all debts in a single entity, better conditions can be negotiated than by having each loan with a different financial entity.
Generally, with a loan to reunify debts, the monthly installment to be paid will be lower than the sum of the installments of the previous debts. Debt reunification loans can be presented as a loan that congregates other loans or as a loan used to cancel other loans. In practice, the operation is the same.
The interest rate on loans for debt reunification
Not all entities offer loans or debt reunification loans and those that do, offer it at a much higher interest rate than personal loans for the purchase of a car or home renovations.
The reason, conceptually, seems simple. A vehicle purchase loan is guaranteed by the vehicle itself. In the same way, a loan for housing reform has a high-value asset that supports it (the house itself). However, a loan to reunify debts not only does not have any collateral but also has other associated debts. By its very nature, the loan for the reunification of debts or cancellation of other loans is the purpose of greater risk among the options available.
Other characteristics of loans for debt reunification
When applying for a loan for debt reunification, you have to keep in mind that you need more financial solvency than when applying for a current personal loan. Among the most important variables to overcome the risk analysis that your bank will do, will be to have an asset with which to endorse the operation, be it a house, a vehicle or a business.
Best loans for debt reunification: Good Finance
Those who want to apply for a debt reunification loan will not find our article on the best personal loans useful since the starting interest rate in the commercial offer of the banks does not apply to this purpose.
Therefore, we make a new comparison, this time with the best loans for debt reunification. To compare the characteristics of loans for debt reunification, we will use, for example, a loan of $ 10,000 to be repaid in 5 years.
Good Credit Loan – Cancellation of other loans
- Interest rate: 9.95% TIN (10.42% APR)
- Term: minimum of 12 months and a maximum of 84 months.
- Financing: Minimum amount of $ 3,000, with a maximum of $ 24,000.
- Resulting monthly fee: $ 212.22
- Total amount due: $ 12,733.20
- No commissions or links.
- Online application, by phone or in the office.
Good Finance Loan
- Interest rate: 13.90% TIN (14.82% APR)
- Term: minimum of 3 months and a maximum of 120 months.
- Financing: Minimum amount of $ 3,000 and a maximum $ 60,000
- Resulting monthly fee: $ 232.16
- Total amount due: $ 13,929.60
- No commissions or links.
- 100% online application, immediate response.