What is debt consolidation? What does it mean? We are talking about a financial product that allows you to assemble all the various loans and bring them together in a single and all-inclusive financing. Therefore, the previous debts are paid off and only one loan is obtained, with a single installment.
Easy debt consolidation near me
Now we will present the main features of debt consolidation near me. Consolidation is usually granted when there are various short-term debts and with a smaller amount. This option allows you to obtain only debt with a longer maturity than other loans. Therefore, a useful opportunity, especially when you are having difficulty in paying off the debt and paying the installments.
In a nutshell, the customer is offered the opportunity to pay a single monthly installment each month whose amount is less than the sum of the various previous loans. Obviously, the period of time required to pay off the debt, in this case, is greater.
Consolidated debt has other interesting aspects. This is a loan that usually extends over a medium-long period of time. This is for the reasons we have just explained. The interest rate is around a percentage similar, if not even lower, to the previous loans. It can be requested in the presence of original short-term loans.
Who is it for?
Debt consolidation is usually aimed at individuals who meet certain requirements. Banks prefer to deal with individuals with good earnings. We refer to people hired on permanent contracts, not reported in the risk center and not identified as bad payers. The presence of a guarantor may be necessary in case of the absence of some of these requirements.
Debt consolidation legislation and objectives
Debt consolidation was introduced in Italy by Law Decree 212 of 2011. It is not irrelevant information. In fact, this financial product was created in a delicate moment for the Italian economy, especially for families. The objective, therefore, was and is to avoid customer over-indebtedness.
What does the bank do?
The bank that is willing to grant this type of loan will take care of extinguishing the previous debt or debts. In fact, the customer will have to deal, from that moment on or once the consolidation request is accepted, with a single interlocutor.
Before lending, the bank will make an in-depth analysis of the client, especially on his debt position. In fact, the financing institution is interested in knowing how much, overall, the debt deriving from the various loans.
The debt consolidation contract provides for the presence of the elements usually present in a loan agreement. Therefore, the data of the lender must never be missing, as well as interest rates, deadlines, amounts and number of installments. If present, the contract must also indicate the guarantors and / or insurance policies stipulated.