Debt reunification What is it? How is it done? How much does it cost? Who can do it? What banks do it?
It is one of the forms most used by those people who have to pay several monthly loan installments and it involves a very high outlay.
In order to get relief and be able to face the payments without this affecting their personal finances too critically, clients go to their entity with the aim of reuniting all the loans in a single installment.
With this guide we want to help you achieve a reunification of debts in the best conditions and without complications.
Do you want to pay less for your loans and debts?
One of the ways to pay less for your debts every month is to do a reunification of debts. It consists of grouping all your debts and loans in a single payment in order to pay less every month.
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How is a debt reunification done?
The first thing is to be up to date with all payments. Banks do not grant loans to customers who currently have an unpaid installment. As small as it is, it is a clear signal to the bank that you may have trouble collecting the fees in the future.
Secondly you have to have income. No bank loan can be accessed without having a fixed income. In addition, you must have an indefinite contract with at least 3 months of seniority and job stability.
You must bear in mind that the remaining installment as a result of the refinancing of your loans must not exceed 40% of your monthly income, so that it does not exceed your debt ratio.
Finally, you must have a property that has a guarantee for the bank in case of non-payment. Said home will be encumbered with the requested amount and will be released once the total debt has been repaid, either through payment of the ordinary installment or through early payment payment.
The house should not have any load or if it does, it should not be very high. Keep in mind that you are really going to request a reunification, which consists of the entity canceling your debts and encumbering them on your home, unifying the payment in a single mortgage installment within the agreed term and conditions.
With this system you will pay more interest for a longer term, but you will get a much more comfortable monthly payment.
Who can do it?
Any client with the ability to pay and economic solvency and a property free of encumbrances. You will only have to provide all the documentation to the bank: documentation of your employment situation, documentation of the home to be mortgaged and documentation of all the loans that you want to reunify.
The bank, after studying the documentation, will appraise the home to ensure that it more than covers the debt in case of non-payment and judicial seizure.
If the response to the study is positive, the entity will proceed to prepare the signature before a notary and to cancel all the client's debts.
From that moment the client will have a single fee with a single entity.
How much does a debt reunification cost?
The expenses derived from a reunification of debts must be paid by the client.
On the one hand, there are the early cancellation expenses of all existing loans, which entails paying cancellation commissions and other expenses. On the other hand, there are the expenses of establishing the new credit, in addition to insurance and other bank commissions and links.
Although in general it is usually quite convenient to carry out a reunification of debts when the payment of all installments exceeds 50% of the monthly income.
What banks do debt reunification?
The reunification of debts is carried out by traditional banks. Online banking is still far from this type of banking product.
As a general rule, the most convenient bank to which we should go to request it is our usual bank, since knowing us will make it easier for them to grant us a product that is ultimately for people who are too indebted.
Is it convenient to make a reunification of loans?
It is not convenient since what is really being done is extending the term of the loans in a single installment, which entails more expenses, more commissions and more interest.
But it is undoubtedly the best option for those people whose monthly income is seriously reduced by the monthly installments of their obligations and loans.
In this way, he obtains more margin every month to be able to allocate to housing and other needs.
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