There is talk of over-indebtedness when there is an imbalance between economic availability and contracted debts. It can happen, for example, if overtime several installments to be paid are added, or to face an unexpected expense. The situation is more common than you think and can be easily resolved with a dedicated solution: Debt Consolidation. Let’s find out what it is and how it can help us find serenity.
Debt Consolidation: what it is and how it works?
Debt Consolidation allows you to combine all the loans taken out into a single loan. Existing debts are effectively extinguished by optimizing the timing and methods of repayment. In addition to simplifying life, replacing several deadlines with a single monthly installment, this solution allows you to renegotiate the debt, obtaining more advantageous interest rates whenever possible, but also to recalculate the amount of the installment and the duration of the loan, adapting it to our real economic availability.
How to request Debt Consolidation?
To apply for Debt Consolidation it is not necessary to contact the banks that have granted the loans in the past, but you are free to rely on a different credit institution. The documents to be submitted to evaluate the start of the procedure are those related to ongoing loans, a certificate attesting income (paycheck or pension), identity card and tax code.
Having analyzed the economic situation and calculated the amount of the amounts to be repaid, the institution will propose a new amortization plan with a single monthly installment. You can choose to lower the installment, perhaps by extending the repayment times, looking for the most sustainable amount for the applicant. Once the withholdings in progress and the right solution have been assessed, the credit institution will pay off all or part of the debts, effectively starting a new loan.
Debt Consolidation with Assignment of the Fifth
The most advantageous solution for workers and retirees who want to resolve over-indebtedness is Debt Consolidation with Cession of the Fifth. This particular form of loan in fact ensures quick times and different benefits, let’s see them in detail.
Payments always respected
The monthly payment is automatically deducted from your salary or pension, avoiding the risk of delays and outstanding payments.
Single and light installment
All debts contracted are united in one monthly installment, always within our reach. As the name also indicates, with the Employee loans the installment never exceeds one fifth of the paycheck or pension, always remaining within 20% of the net salary or pension.
No guarantors or mortgages
The only guarantee required is the salary (or pension), nothing else is needed. For the same reason, loans with Employee loans are also granted to those who have solvency problems in the past, such as bad payers and protests.
The Consolidation of Debts with the Transfer of the Fifth also protects our family, because it includes comprehensive insurance coverage against all risks.