The budget cuts that Portuguese households have witnessed in recent years have had a major impact on their ability to meet their financial obligations. The situations of over-indebtedness, attachment, and insolvency have increased.
It is fundamental to change this situation and solve the problem at the root. If you are already over-indebted or if you are experiencing difficulties in fulfilling your responsibilities, know an alternative to solve the problem. The focus will always be on reducing benefits, to gain backlash in your family budget and to ensure that you can pay your creditors.
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The consolidation loan is a financial solution created several years ago to allow a reduction in the financial services of Portuguese families. The idea for consolidation loan at consolidationnow.com – is to put all your loans together. In this context, the origin, financial institution or purpose of the credit is not relevant. This credit will:
- Hire a new loan;
- Pay all other credits (or most);
- To reduce the overall value of its benefits by up to 60%;
- Have only one intervener (a financial institution), which facilitates their monthly monitoring.
Two Options at your disposal:
For the contracting of a consolidated loan you can choose two different situations – with or without a mortgage:
Consolidated Mortgage Loan – Giving your home as a mortgage can get a bank to grant you a consolidated loan. Mortgaging an asset the bank has an additional comfort that the customer will all do to honor their commitment. Ultimately, he risks losing his house, which is not pleasant at all;
Consolidated mortgage loan – It is also possible to consolidate loans without mortgaging your home. However, the amounts involved will be lower (up to € 50,000) and the approval process may be longer. The bank, once again, wants to minimize the risk of credit default.
What are the Main Advantages
- We can summarize the advantages of consolidating credits in:
- Reduction of your monthly payment, which may prevent default;
- Single monthly installment, which facilitates financial control;
- Effective management of payment deadlines.
In terms of Disadvantages, Highlights:
- Increase in the term, which will lead to an increase of interest payable;
- Hiring new credit (with associated costs).
I’m torn. What to do?
Understanding the indecision when deciding on the best financial alternative, Panurge has at your disposal a free consultation or financial diagnosis. In practice, we propose to evaluate your specific situation and recommend the best solution for your specific case. To contact us click here.
One last note: all problems have a solution. Whether through renegotiation, credit consolidation or insolvency. There is always a solution. And never forget that banks and financial institutions are more interested in your client paying them benefits. More than even …