Debt reunification loans – Debt consolidation

We grant loans to reunify debts

We grant loans to reunify debts

If you want to apply for a loan to pay off debts in the financial market, you have various types of loans with which to do so. Both banks and private financial companies offer different solutions to bring together everything yo- u owe in a single loan.

In Loansolution we have specialized personnel to carry out these procedures on a daily basis, who will look for the best solution for your specific case. Consulting with an expert is completely free. You will not have to pay anything for information, and we anticipate that a new loan to pay off all your debts in a single monthly payment will mean a radical change in your financial situation.

Example of the loan

Example of the loan

If between the mortgage on your house, the car loan, a consumer microcredit and your cards you pay about 1363 dollars each month, with the new loan you will only pay about 408 dollars. As you can see, we are talking about only a third of what you now have to pay every month, or what is the same, a savings of approximately 70%.

We are experts in reuniting debts through new loans exclusively for it. The best way to carry it out is through someone who knows the market and can manage the best conditions for you, without you having to ask around.

Steps for application

Contact us without obligation we will inform you, we are here to help you and make it easier for you, the reunification process is divided into these 3 steps.

  • We study your file, Free.
  • We offer the best options
  • Receive the money in the account after signing, at the bank.

What kind of loans are there to reunify debts?

What kind of loans are there to reunify debts?

Currently you have two main ways to reunify your debts. If it is not a very high amount, generated by a small loan, some microcredit and cards, you will be able to solve it with a personal loan, with your payroll and without having to mortgage anything. The system consists of requesting one that covers everything you owe, paying those debts and keeping only the new loan, the amount of which will be less than the total you pay now, although it will not be as high a difference as if it were a mortgage loan..  

You also have the option to ask for a mortgage. For this, you must have a property to mortgage or you should have little to pay on the mortgage on your house, in this case it would be a loan with a mortgage guarantee. This solution is for larger debts, which usually include the remaining part of the mortgage on the house, a loan such as a car, a microcredit and cards. In these cases, as we said before, you pay up to only a third of what you pay now, with the new installment. The reason is that you put all the debts together in a much longer repayment period.

Simulate a loan to reunify debts

Loan amount $ 3,000 $ 50,000 Interest 0% 12% Years 1 year 15 years TIN: 10.90% APR: 11.46%
Total amount due: Interests: Monthly payment: 

Do not wait any longer and consult your case with a Loan Solution expert, who will find the best option for you to stop being financially drowned. We work with most banks and we can reunify debts in banks without changing entities.

How and in what situation can the loans be reunited?

How and in what situation can the loans be reunited?

In LoanSolution you will find the best financial advice on the market. You will be able to access any type of debt reunification loan. What banks do not offer you, private financial companies can give you;   based on your situation and your needs. 90% of the clients who go to LoanSolution achieve their objective, and with interest from 3%.

To reunify your debts, whatever your situation, you have various kinds of loans, such as a personal loan, without a mortgage. You can also do it with a mortgage.  

If you have multiple debts, and together they add up to little money, you can reunify all those microcredits. Furthermore, it is possible to reunify debts with ASNEF; and also, having multiple open loans, without housing. A financial expert, such as those of LoanSolution, is who can best help you in debt cancellation.    

Do not think about it anymore, return to recover your tranquility.

 

Loan Insurance: Understanding TAEA to compare rates.

The arbitration in terms of loan insurance has its importance on the cost of mortgage financing. The rate for comparing the costs of loan insurance is the TAEA, not to be confused with the APR for mortgage loans.

From interest rate to APR

From interest rate to APR

Difficult for the layman to find their way in the middle of these acronyms. It is when we look at the financing of a project – in particular a real estate purchase – that we concretely confront interest rates. The loan interest rate is used to calculate the cost of a loan. Expressed as a percentage, it applies to the amount borrowed in order to determine the remuneration intended for the lending institution. The annual effective annual rate, or APR, is the one that includes all the costs associated with taking out a loan, including loan insurance. It is thanks to this rate we can compare two loan offers between them.

TAEA, the loan insurance indicator

TAEA, the loan insurance indicator

The APR therefore includes the cost of borrower insurance, in particular in the case where this insurance is taken out with the bank (group insurance). The TAEA represents the cost of insurance in rates, which makes it possible to standardize loan insurance proposals. This makes it easier to compare between several loan insurance solutions. In a way, it plays the same role as the APR for the cost of the mortgage. The TAEA formula was defined by decree of October 14, 2014. It is the APR with insurance – the APR excluding insurance.

TAEA allows the competition of loan insurance

TAEA allows the competition of loan insurance

Once we know the TAEA, it is then possible to bring competition between establishments, at several times: from the subscription of the mortgage thanks to the Lagarde law which allows the delegation of insurance, during the first year of the loan thanks to the Hamon law, and finally on each anniversary date of the signing of the loan offer according to the Bourquin law. Comparing loan insurance online then allows you to get an idea of ​​the possible offers based on your profile. A loan insurance broker can also assist the borrower in choosing a loan insurance at the best price while respecting the guarantee equivalents.

Equivalence of guarantees: a prerequisite for changing loan insurance.

Legislation has paved the way for mobility in loan insurance, but competition between banks and insurers is based on one crucial element: the equivalence of guarantees. If this condition is met, the change in borrower insurance is only a matter of timing.

Competition established since 2010

Competition established since 2010

Since 2010, the Lagarde law allows a borrower not to blindly choose the group contract offered by his bank to insure his home loan. It can in fact bring competition into play by favoring the individual contract of an insurer. This is called delegation insurance. This legislative provision aims to reduce the cost of borrower insurance, and it was reinforced in 2014 by the Hamon law and then in 2018 by the Bourquin amendment to the Sapin 2 law.

But what remained unchanged was the condition of the equivalence of the guarantees registered in article L, 312-9 of the Lagarde law. It authorizes the lending institution to refuse a request for delegation of insurance if the individual contract offered by the organization does not have a level of guarantee equivalent to that of the group contract.

The limiting list as a reference

The limiting list as a reference

The equivalence of guarantees is not judged at the whim of the lending institution: it is based on a restrictive list of 26 criteria decreed by the Advisory Committee on the Financial Sector (CCSF). There are 18 for borrower guarantees and 8 for the optional loss of employment guarantee. Among these criteria, the lending institution is entitled to demand 11 on DC, PTIA, ITT, IPT and IPP guarantees. And in the event that he demands the loss of employment guarantee (PE), he can demand equivalence on 4 criteria.

Several shooting windows for the borrower

Several shooting windows for the borrower

The required criteria must appear on the standardized information sheet (FSI), a document that can be used by the borrower to bring competition into play. The insurer who wishes to make a contract proposal will then only have to match the criteria required. This can be done at the time of signing the loan contract, but also at any time during the twelve months that follow as well as on each anniversary date of the mortgage.

Loan insurance: a bill to better inform the borrower.

Martial Bourquin is intimately linked to borrower insurance, more specifically to the delegation of insurance because of the amendment to which he gave his name. Senator du Doubs is still defending a bill to promote the free choice of loan insurance, at a time when 87% of contracts are group insurance.

Loan insurance is far from trivial

Loan insurance is far from trivial

Loan insurance is the guarantee both for the bank and the borrower that the maturities of the mortgage will be honored until the end of the contract in the event of a claim (death, disability, etc.) For this, the banks offer a group contract identical to all the underwriters in order to pool risks, which can sometimes represent a third of the total cost of real estate financing. Since the Lagarde law of 2010, it is possible to take out individual loan insurance, in order to benefit from tailor-made guarantees and thus lower the cost. The Hamon law in 2014 authorized the loan insurance change at any time during the first twelve months, and the amendment Bourquin extended this possibility since 1 January 2018.

The Bourquin amendment, continuous competition

The Bourquin amendment, brought by the socialist senator and integrated into the Sapin 2 law of February 17, 2017, offers the possibility for the borrower to change to another insurance contract on the anniversary date of the signing of the mortgage contract. To be accepted by the bank, the new guarantees must offer protection similar to the group contract.

However, despite this amendment, the termination of the group contract remains little used. The advantage obtained since the 2017 law is the reduction in the tariffs applied. The senator nevertheless remains mobilized on this issue.

Clearer termination date

Clearer termination date

Re-elected to the Senate on September 24, 2017, Senator Martial Bourquin has prepared a bill “to speed up and simplify public action” which plans to improve the information given to individuals because he says it lacks readability. For this, the banks will have the obligation to enter the date of signature of the loan offer on the insurance contract and the notice in order to be used as a possible termination date.

Otherwise, the borrower may terminate his insurance at any time. In addition, they must send a standardized form free of charge summarizing the offer to the borrower within 10 days after the agreement of the mortgage. Finally, they will send every year, well before the anniversary of the contract, a reminder of the right of termination. A fine of $ 15,000 is notably provided for in the event of non-compliance with the law. This project will be voted on in April.

What are the costs of a non-bank loan?

There are some costs associated with taking out non-bank loans. This is not surprising, as is the case with loans granted by banks. The amount of fees is specified in the contract concluded between the financial institution and the client. Find out how much you have to pay for a non-bank loan.

Free non-bank loan – is it possible?

Free non-bank loan - is it possible?

On the non-bank loans market, especially short-term loans, competition is high. Due to favorable repayment terms, loan companies try to attract potential customers. The promotion that makes it possible to take the first short-term loan without paying interest is very popular.

You can take out such a loan, among others on a website belonging to one of the leading loan companies in Poland.

It is a marketing strategy that benefits both parties – the company has the opportunity to prove to the customer that the service is fast and professional, and borrowers can save some money on credit, which is undoubtedly rare in the financial world.

Commission for granting a non-bank loan

bank

The first cost to take into account when taking a loan – both bank and non-bank – is the commission. It is calculated once and its amount should be clearly indicated in the contract.

The maximum amount of commission is regulated by the provisions of Polish law and may not exceed the percentage value of the APRC stipulated in the Anti-usury Act of 2015.

Any loan company that does not comply with the law is exposed to high financial penalties. The commission is usually the largest part of the cost of granting a short-term non-bank loan.

The interest cost of a non-bank loan

The maximum interest cost of a non-bank loan is also strictly defined by law and may amount to twice the Good Finance reference rate (currently 1.5%) + 3.5%.

In the case of short-term loans, for small amounts, the interest rate constitutes a small part of the costs. The situation is different in the case of non-bank installment loans. This is because interest is calculated on an annual basis, so the longer the repayment period, the higher the interest.

Interest for late repayment

The amount of interest for late repayment should be included in the contract. If not specified, it is calculated in accordance with the provisions of the Civil Code, based on the current level of the Good Finance reference rate + 5.5%. As in the case of other costs, here too the maximum interest for the delay is set, which may not exceed twice the statutory interest on an annual basis.

 

Do we have a chance for a loan with a bad credit history?

Very often you can find the statement that due to a bad credit history we have no chance of a loan or a consolidation loan without debt for the indebted . Is this really the case? Are people with  difficulties in paying their debts no chance for financial support? You will learn this from the text below.

Bad credit history – do we have a chance for a loan?

Bad credit history - do we have a chance for a loan?

Already piling up bills and financial obligations can be a headache. And what about when someone tells us that due to our bad credit history we have no chance for financial support from the bank. Is this really the case? Do we not have a chance at the bank for a consolidation loan without debt for the indebted? As a rule, banks have very restrictive regulations, which means that they provide financial support only to those clients who will be able to comply with them.

And even if we go a long way in applying for a loan, we may receive a negative decision. Then what? Seek support from family or friends? Not necessarily. After all, there are also loan companies on the market that no longer place so many requirements on their clients, and even those with debt have a chance for a loan or credit. An example of one of the most interesting products for those in debt is the consolidation loan.

Debt Consolidation Loan – What is a Financial Product?

Debt Consolidation Loan - What is a Financial Product?

It can be stated that a debt consolidation loan without debt is a financial product that will help you get out of serious financial problems. What does it consist of? The financial institution whose services we decide to use sums up all our liabilities and repays our creditors, after which it takes over our debt and creates a loan which we will have to pay back.

This time only one liability is left to be repaid, whose monthly installments are set so that the creditor can pay it off. It is worth remembering that the debt consolidation loan without debt was created with a view to helping in getting out of debt, so also the repayment time is adapted to our needs.

What does it mean to reunify loans?

The reunification of loans is the process by which all the credits and debts that we have pending repayment are grouped into one. Thanks to this operation, each month we will only have to face a single installment, instead of having to pay several installments whose total amount adds up to more than the single installment of the reunited loan.

In short, with this we obtain an easier debt to manage, not only because we have to face a smaller amount per month, but also because the process of paying it is concentrated in a single payment. Of course, we must bear in mind that, if we go to the option of reunifying loans, we will have to do it with all the debts we have. It would not be worth grouping a set of debts and not others.

 

How to do a loan reunification?

How to do a loan reunification?

In general, the reunification of loans is usually carried out by a mediating company, although if the loans that we have pending to return are all in the same financial institution, it may be the bank itself that offers to carry out this process.

Similarly, whoever is in charge of the reunification, it requires a prior study of the creditor’s situation. This study analyzes the total amount of capital that we have pending to return, the interests that we are paying and the schedule of amortization terms that we currently have. It is quite common that, to form the new single loan, an asset or a set of assets whose total value is 20% higher than the total amount of the loan to be returned is required as collateral.

Once this guarantee has been presented, the entity in charge of carrying out the loan reunification will present us with its new payment proposal, the new monthly installments to be paid, the amortization schedule and the new maturity term that we are facing. If we accept the proposal, the mediating entity will contact our creditors to negotiate with them the new payment terms of the loans that we had pending with them. Once this negotiation has been carried out, we will proceed to the cancellation of all the debts that we previously had and to the constitution of the new single loan.

 

Advantages of reunifying loans

reunifying loans

As we mentioned at the beginning of the post, one of the main advantages of reunifying loans is that we went from having several debts to one. In the first case, we had to face a fee that was too high for our ability to pay, while when we reunited the loans, we would have to face a single fee that was smaller and easier to manage.

The main advantage, therefore, is the relief we gain in meeting our financial obligations, readjusting them to a schedule and to conditions that are much easier for us to assume.

However, this option is far from being without disadvantages and risks. Let’s see some!

 

Disadvantages of reunifying credits

Disadvantages of reunifying credits

Joining our debts into a single one implies a series of expenses that should be taken into account.

Thus, since reunification is associated with the early cancellation of all our loans, the most common thing is that we will have to pay the usual early cancellation fees that these types of financial products usually have.

On the other hand, to unite our debts, we must formalize the opening of a new loan, with all the associated expenses that this may entail. For example, the opening commission and study expenses.

Furthermore, if it is decided to manage the reunification through a mediating agency, it will charge its own fees and, in case of reunifying the debts through our own bank, they usually charge commissions for the reunification operation.

These are all costs associated with managing the reunification process, but they must also be added to the costs of the new single loan itself. Obviously, if the creditors finally agree to delay the repayment period of all the debt owed to them, it will be at the cost of higher interest.

Although it may seem that this is not the case, because the monthly installment is reduced, the total number of installments increases so, finally, the amount that we return to our creditors will be greater than what we initially had with them.

On the other hand, we must also consider the risk of losing the asset or assets that we have put as collateral if we do not comply with the return schedule of the single loan that we have.

As you see, reunification of loans has its advantages and disadvantages. Before opting for this option, it is important that you check accounts and values ​​if it is convenient or not to opt for a single loan.