Last Updated on 23/01/2022
Quora News: If we accumulate several debts that suppose us a periodic payment, an alternative that we can consider is to unify those payments in a single installment.
This operation is known as the application for a loan for debt reunification, and it is one of the most requested loans today: to face the mortgage payment, the children’s study loan, credit card …
it is about debts that we can unify through this option, taking into account that this type of loan has 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 the debts in a single entity, better conditions can be negotiated than if we had each loan with a different financial entity.
Generally, with a loan to reunify debts, the monthly payment to pay will be lower than the sum of the payments of the previous debts. The loans for debt consolidation can be presented as a loan that brings other loans or a loan used to cancel other loans. In practice, the operation is the same.
Loans for debt reunification: interest rates
Not all entities offer loans or credits for debt reunification and those that do offer it at a much higher interest rate than personal loans for the purchase of a car or home renovations, for example.
Entities such as Banco Sabadell or BBVA warn that refinancing or reunification of debts is not accepted as a purpose in their loans, while ING that offers a starting interest rate of 3.99% TIN on its Orange loan, this may increase for the case of the reunification of debts (which would really consist of the cancellation of other loans).
The reason, conceptually, seems simple. A vehicle purchase loan is secured by the vehicle itself. Likewise, a home improvement loan has a high-value asset to back it up (the home itself).
However, a loan to reunify debts not only does not have any collateral, but it also has other associated debts. By its very nature, the loan for debt
Debt reunification loans: other features
When applying for a loan for debt reunification, keep in mind that you need greater financial solvency than when applying for a regular personal loan. Among the most important variables to overcome the risk analysis that your bank will do, it will be to have an asset with which to guarantee the operation, be it a home, a vehicle, or a business.
If you have delinquency problems, you can contact Woinfi Legal, a company that specializes in insolvency and risk problems, free of charge and without obligation.
Best loans for debt reunification: Cetelem, Younited Credit, ING …
Those who want to apply for a loan for debt reunification will not find our article on the best personal loans useful, since the starting interest rate in the commercial offer of banks does not apply for this purpose. Therefore, we make a new comparison, this time with the best loans for debt reunification.
Interest rate: from 6.95% NIR to 7.18% NIR (from 7.18% APR to 10.36% APR)
Term: minimum of 12 months and maximum of 96 months.
Financing: Minimum amount € 4,000 and maximum of € 60,000
Without commissions or links.
100% online request, immediate response.
Younited Credit Loan
Interest rate: from 1.83% NIR (from 3.50% APR)
Term: up to 84 months.
Financing: Minimum amount € 1,000 and maximum of € 50,000
No ties. Commissions and management expenses included in the APR.
100% online application.
ING Orange Loan – Cancellation of other loans
Interest rate: 3.99% NIR (4.06% APR)
Term: minimum of 12 months and maximum of 84 months.
Financing: Minimum amount € 6,000, with a maximum of € 24,000.
Without commissions or links.
Application online, by phone or in the office.
It is important to note that these interest rates are for ING clients. You can become a client with payroll or non-payroll account without commissions in the following link.
Supergroup Loan with Home Equity
With the Supregrupo loan, you can request financing in exchange for putting your home as collateral for the operation.
Interest rate: From 2% NIR (APR from 3.9%)
Financing: From € 10,000 to € 300,000
Term: From 6 months to 240 months.
Does it allow RAI, Financial Credit Institutions? Yes, it does not matter that you are on a delinquent list.
Without links of any kind and without changing the bank’s payroll.
Requirement: Owning a property