It is likely that you have accumulated a few debts and are interested in canceling them all at once so as not to have an accumulation of loans and interests. However, you may not know if there is any possibility of doing so.
From Lite Lender Company we are going to explain the concept of loans to pay off debts. A type of financing that allows you to reunite all your debts in a single credit. In this article we will learn how this type of financing works and what must be done to request it.
How loans work to pay off debts
There are certain moments in life when we end up accumulating several credits that end up compromising our financial situation. There comes a point where we are in such a position that it would be good to request a new credit for previous ones. But is this possible without further worsening our finances?
The truth is that yes. Although it is not the most recommended option, as we will increase the duration of the new loan and its interests, it may be a way out of a compromised economic situation. Especially if we have to settle urgent debts and we are registered in delinquency records like Asnef.
Different types of loans to pay off debts
No one likes to accumulate debt. However, at certain times we may find ourselves in a somewhat difficult financial situation. It is quite frequent that when we must find an economic solution to this situation we find ourselves in registries such as Asnef or RAI. Our name can appear without problems in these delinquency files if we fall behind in any payment of supplies or if we delay in returning the term of a credit.
At this point the loan possibilities are reduced. For example it happens with the case of the banks. Traditional financial institutions do not offer liquidity to those clients who are registered in these delinquency files. Mainly because they do not consider them solvent. If we add to this an unstable income, things get even more complicated.
However, today there are many lenders on the Internet who do offer money to these profiles in order to pay off debts. Below we are going to offer you two ideas to be able to end this economic situation in a comfortable way for you.
Online lenders specializing in debt cancellation loans
Within the world of online loans there are all kinds of options. From those who offer a first micro credit of a maximum of $ 300 without interest. Even other types of lenders who can lend large amounts of money. Even more than $ 50,000. In some cases, the interest may be somewhat higher than that offered by a bank. Since the lender adds a higher risk accepting profiles whose financial solvency is not assured. This fact occurs especially when seeking to obtain capital immediately and with practically no paperwork.
But when loans are somewhat higher in both duration and advance, they do not have to have more onerous interest. In these cases the lenders what they usually do to ensure the operation and the return of the capital is to work with guarantees. As a general rule these guarantees are usually real estate free of charges and used as collateral.
Debt reunification, the quintessential loan to pay off debts
Debt reunification is another alternative to pay off multiple debts at once. This action consists of grouping all the loans that we have open into one. This technique gives us the opportunity to have a single plague each month at a much more affordable price for our home economy.
In these cases, the lender becomes the person in charge of settling the previous debts. In exchange, the borrower purchases a single loan. The trick to making payments more affordable month by month is to lengthen the duration of the loan. Whose consequence implies increasing interest.
It is an alternative that can be a good solution if we are not able to cover all our debts with monthly income. Although we will pay more money in the long run, it will allow us to manage debts in a looser way.
In addition to the interests, the reunification of debts implies assuming another series of expenses. For example, those associated with early repayment of other loans. If we are going to add the mortgage to this reunification we will have to request the opening of a new one and assume the expenses. And finally, the rates of the agency itself, which will function as a mediator to reunify the debts.
Main advantages of debt cancellation loans
Although these solutions may imply a higher cost in the long run, they are not without advantages for the user. Without a doubt the main ones are.
- Get an instant solution to our credit problem. Through these systems you will be able to pay urgent financial commitments that you could not otherwise face.
- Achieve a more comfortable financial situation. Although it may mean greater interest expense in the long run, it will allow us to arrive without drowning at the end of the month. And it will give us the opportunity to try to improve our economic situation.
- Flexibility. It gives the opportunity to pass a financial slump to all kinds of users. Including those who are in Asnef or RAI or do not have a stable monthly income.