Have debts. If you are unfortunately in this predicament, do not worry, you still have solutions. There are many ways to manage your money efficiently where you will notice that there are many more outlets for example read on how to manage money in our Financial Calendar entry. This time we are here to explain other options, such as loans to consolidate debt and debt repairers. Debt repairers, although it is a service that costs to acquire it, can also bring great advantages such as a 70% discount on your debt. If you want to know what debt consolidation is and more, read on.
What is debt consolidation?
Debt consolidation refers to the action of combining all your debts into a single credit, seeking to reduce or make easier, the payment for debtors.
They usually have longer payment periods or lower interest rates, it is even possible to reduce the amount of debt by a considerable percentage. Everyone can go to their bank or their lenders to negotiate a consolidation, however, there are also entities that offer advice and the negotiation service for a commission or percentage of the debt.
The entities that will negotiate your debt tend to have people with high experience in the subject so it will be much easier for them to arrange a good deal, it is important to take into account that many of these entities work by percentage and evaluate your case only if this It is greater than $ 30,000 pesos.
1 out of 9 Mexicans can benefit
Debt consolidation has been born in Mexico due to the credit life rhythm in which we live and the need that many of us have to complete the payments of the same, more than 55% of Mexicans have resorted to credit to cover the expenses of the day a day, what is needed is a good financial education to take advantage of your plastic or loan.
If you are familiar with the consolidation of financial statements, be it because you are or work in the accounting area of your company or because you have your own business, you will know that this brings benefits to companies but also to individuals. It is the same case with loans for debt consolidation.
Currently the average debt of Mexicans who make bad use of credit is 140 thousand pesos approx. More than 12 million Mexicans have a debt with a banking institution, in addition to that we are not taking into account intermediary lenders and / or places that have not been registered with the Treasury.
This means that 1 out of every 9 Mexicans could make use of a debt repairer, of course, we advise you to review all your options before resorting to a new loan, find useful information below.
Consolidate your debt
Advantages of debt consolidation
- A single account: Sometimes the debt is not accumulated for lack of money if not for a bad administration, to have a single financial plan that meets all your responsibilities you will not have to worry about the interest generated in an account that you use very little and It is practically forgotten.
- Reduction of payments: Banks really want you to be able to pay and that is why negotiating a fraction of the payment instead of losing its entirety is in your best interest. If you agree to pay on time and responsibly open a window to get rid of your debts.
- Tranquility: They say that peace of mind is priceless, you can concentrate all your time and energy on saving the money you need without worries in your head.
- Advice: With the consolidated debt you have access to financial experts who will help you to prepare payment plans, giving advice on how to save and spend less, without needing to pay extra for this service.
Disadvantages of debt consolidation:
- High interest rate: Although it is uncommon, combining debt is a process by which the bank or lender may decide to place an extra interest rate or increase the current one. That is why we recommend going with advisors to help you understand what the conditions of your new loan will be. Remember that before accepting any condition you can perform a free analysis.
- Charges for management: As interest rates can also add extra costs to manage your account, that is why you should inform yourself about debt repairers and choose the one that best suits your needs.
- You lengthen your time as a debtor: The longer you take to pay your debts, the longer you will be as a debtor in the credit bureau and will have less access to special offers or rates from other places. If you can pay your debt immediately there is nothing more advisable than that.
- It is another loan: At the end of the day we must be frank and accept that it is another point in the loan cycle, and perhaps it is not what we want anymore. Like another loan, it carries responsibilities.
How to get a loan to consolidate your debt?
Obtaining a consolidation loan may seem difficult since many banks will reject your application if they come to see your debts, however, there are companies that work with us such as Solve your Dueda and Cura Debt dedicated solely to repair your debt, and that are also completely on-line.
You will need to have at your hand, a document that proves the amount of debt you have and the name of the banking institution or third party where you have the debt, an official identification and contact information such as mobile and email.