Reunify credits to deal with complicated situations

What is a loan to reunify debts and how do I request it?

Reunify debts means to group all the payments of the different credits, mortgage loans or credit cards of different entities in a single installment. The action of reunifying credits allows us to pay in total a smaller fee, which will allow us to balance our economy, although in total we will pay more interest since the repayment term is longer.

We can request a reunification of our credits in both banks and private equity companies, there are many entities that offer this option to help their users. The most common is to go to one of the entities with which we already have some type of financing contracted to request this reunification.

In general, to be able to reunify our loans via Kanastacorp payday loan consolidation, it is necessary to present a guarantee that is usually our property, since the great majority of reunifications have a mortgage and other outstanding loans. In this case, it will not be necessary to justify income and it will not matter if we have outstanding debts registered in delinquent files.

There are cases in which it is NOT necessary to present guarantees or guarantees: in the event that the debts are not very large (which usually means that there is no mortgage loan) we can also group our debts through personal loans without guarantees. We simply must request the amount we need to prepay our current debts and cancel them and pay the new credit in one installment.

How do home equity loans work?

The loans with real estate guarantee are one of the systems to reunify more recurrent debts. It is a type of loans without endorsement in which we put a property of our property as collateral in case of default. This type of credit is used in cases where it is difficult to obtain financing, such as:

  • If you need loans with ASNEF
  • If you want a credit without a payroll or if you do not have a demonstrable income
  • If you have several debts that you need to group
  • If you want loans without endorsement

The main requirement to get a mortgage loan is to have a property or home that is our property (or, in some cases, with a mortgage almost paid). We must bear in mind that, in case of default, we run the risk of losing our property, so this type of loans are only recommended if we can not use other financing systems.

Is it convenient to group credits?

It depends on our situation. The reunification of credits serves to prevent us from paying, in total, a smaller fee than what we are currently paying with all the installments of all the different types of financing we have contracted. On the one hand, it allows us to rebalance our economy and avoid over-indebtedness. However, on the other hand, to get a smaller fee we lengthen the repayment term which translates into more interest in the long run.

Before deciding if we should request to reunify credits we must evaluate our economic situation and if it agrees to us to pay more in exchange for being able to have some smaller payments. This type of financing is designed for extraordinary cases where we are overwhelmed by our payments. One way to evaluate if it is really necessary to reunify our credits is to see if we fulfill the 40% rule. This rule says that as long as the whole set of payments destined to loans and different financing debts does not exceed 40% of our revenues, our economy will not be unbalanced. For example, if we have an income of € 1,000, the whole of what we pay for all the credits cannot exceed € 400.

How is a debt pool reimbursed?

The reimbursement of a credit reunification is done in a similar way to personal loans. We must return the fees to the entity to which we have requested the personal loan to reunify debts since the other credits that we had in force will already be reimbursed and canceled.

The repayment of this type of credits is made through quotas of a part of capital plus a part of interest through the direct debit of payments. As if it were a receipt for water or electricity, the amount of the new unified credit installment will be deducted automatically from our checking account on the date agreed in the contract. There are other ways to repay personal loans such as transfer payment, cash payment or even card payment. However, with this type of financing, we will be asked to direct the payment in the current account of the entity.