Refinancing debts

5 Mar

More and more families are resorting to refinancing debts or grouping loans as a formula to cover family expenses. This, together with the Spanish economic situation with unemployment rates that increase month after month, have made the refinancing of debts a solution that serves as a refuge for people who are experiencing economic difficulties.

Given this scenario, a solution that has a growing number of supporters is the refinancing of personal debts , which consists of converting all consumer loans and transforming them into a mortgage loan. In this way, a longer term and a lower interest rate are contracted than that of easy loans or personal loans for consumption. By grouping all loans or personal loans through the refinancing of debts, it is sometimes possible to considerably reduce what these families are paying at the end of the month.

The refinancing of debts will be interesting to all those families that need liquidity because they are going through difficult times to face the different installments of their personal loan or even for those who have stopped paying and who have embargoes or an auction of goods in a way imminent.

Requirements to proceed with the refinancing of debts :

In order to carry out a debt refinancing operation, debt consolidation with incidents, cancellation of foreclosures or a grouping of credits, the client must have a home of his own or the possibility of mortgaging that of a close relative, since all the operations that are managed are through mortgage loans . The refinancing of debts allows you to reduce almost 40% in your monthly payment, return your purchasing power and your ability to save. Mainly for these reasons, debt refinancing is the optimal solution to regain a balanced budget, with maximum power to manage the inflows and outflows of money.

One of the main advantages of this financial service that can also have extra money paying a lower fee. The savings that facilitates the refinancing of debts is at the expense of changing short-term commitments for a long-term debt. However, even if the debt remains for more years, the financial burden may be lower.