Debt Consolidation

When debt consolidation loans are suitable for bad payers

A debt consolidation loan

Accumulating debts of various kinds, for the home, for the car, for unexpected expenses to be covered urgently, can create some problems in the management of deadlines and in the most serious cases put them at risk of insolvency. A debt consolidation loan is sometimes enough to regularize this situation, but is it also suitable for bad payers ? As always in these cases it is not possible to give an answer without evaluating some important variables.

Which concern, for example, the amount of debt and late payments, as well as the income guarantees that can be offered to the bank. A debt consolidation loan is nothing more than a loan that extinguishes the loans already started with different creditors by combining all the remaining debt with a single creditor.

The result is a single monthly installment to be paid, which, since the debt has been renegotiated, can become lower than the sum of the installments previously paid each month. The new debt can in fact be deferred over a longer period with consequent lowering of the installment, and in some cases it may provide for additional liquidity.

Access debt consolidation

To be able to access a debt consolidation it is always necessary to pass a check by the bank with respect to the income and the type of work contract in place. A bad payer who, however, can count on income from work for an indefinite period or on a pension is therefore not necessarily excluded from the possibility of debt consolidation, as long as he can provide adequate guarantees of repayment to the new bank.

Much will depend, as anticipated, also on the seriousness of the insolvency problems encountered through the risk stations, because there is obviously a difference between delays in repayments and repayments never made. Ideally, however, it would be advisable to proceed with a request to consolidate debts at the first signs of difficulty in settling the loan installments regularly, so as to send a request without major financial problems behind which could hinder approval.

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