Consolidating debts for bad payers can be a good solution? And how to get it? Debt consolidation, in short, is a solution that allows for the collection of multiple loans, repaying them with a single monthly installment, renegotiating the amortization plan with the credit institution or the financial institution. It is also possible, in some cases, to obtain additional liquidity, which can be used to incur expenses that were not foreseen at the time the previous financing was requested. This could therefore be a solution to be considered for bad payers and for those who find themselves in a difficult economic moment, which will have the opportunity to pay off their financial situation without having to face multiple monthly installments of too much money high.
Debt consolidation for bad payers, how it works
Nowadays practically every type of expense can be paid in installments; this possibility, however, leads many people to take advantage of it until losing the account of the loans turned on and therefore the number of monthly installments to be paid. Then having to cope with the daily expenses, it is easy to understand that it is often difficult to pay on time this large amount of installments.
To be classified as a bad payer just skip the payment of even one installment: at that point you will be reported nationally and it will be more difficult to get a new loan.
Solving this situation is possible: you can in fact access debt consolidation, which gives another chance to those who are in a difficult time. With this type of loan it is possible to combine all the installments of loans in progress into a single monthly installment: it will therefore be the credit institution that grants the debt consolidation loan to extinguish the previous loans, thus becoming the sole creditor. In this way it will be possible to reformulate the value of the installment and the repayment period of the loan, lowering the amount of the monthly disbursement in a manner that is more sustainable for the debtor. Not only that: sometimes in this way it is possible to request an additional liquidity from the credit institution from which the loan for the consolidation of debts was obtained.
Consolidating debts for bad payers: who can access them
As we have seen, just skip the payment of even one installment to be automatically registered in SIC (Credit Information Systems), better known as CRIF (Financial Risks Center) or Eurisc. If the consecutive unpaid installments are only two, only a report is initiated that does not affect the creditworthiness of the person concerned, provided that he settles the debt and resumes regular payments. At this point the debt consolidation is a good solution because it allows access to new financing that allows them not to incur penalties or foreclosures.
If the unpaid installments increase, however, you are reported for insolvency and even getting a loan for debt consolidation can become more complicated. Some credit institutions, in fact, can choose not to grant it to people who have skipped payment of more than two installments.
There are also general requirements to be able to access a debt consolidation loan for bad payers:
- aged between 18 and 86 years
- be a fixed-term employee for at least 4 months
- be permanent employees from a minimum of 4 months to a maximum of 24
- be retired
Trying to pay as much as possible the outstanding installments will be a gesture of goodwill on the part of the debtor that can lead to a positive assessment of his request, as the approval or non- application of a consolidation of debts for bad payers depends a lot on bank and sometimes from the branch manager. The decision is made by assessing the applicant’s overall financial situation, the properties or assets he can provide as collateral, the salary he receives and the amount of funding he has to repay.
Consolidating debts for bad payers, solutions
If the request for consolidation of payables for bad payers is approved, the bank may propose some solutions for the repayment of the installments of the new loan.
Employees or pensioners can choose the formula for the assignment of the fifth salary or pension, generally very welcome by the lenders because in this way the amount of the installment is held directly by the applicant’s monthly entry. The amount of the installment, in this case, can not exceed one fifth of the salary or pension.
An alternative for those without a paycheck and without a pension (but still receives a regular and demonstrable monthly income) can instead choose the solution of the loan being changed.
Once the debt consolidation loan has been fully repaid, the debtor’s name may be removed from the Central Risk database, thus returning to being considered a good payer and thus being able to obtain additional funding if needed.
What is the extinction count?
One of the things to do before proceeding with the debt consolidation request is to make the extinction count of the residual sum of all loans in progress: the result will be the total amount necessary for the resolution of all debtor loans. To this sum must be added the amount of interest not yet accrued, ie the part of future interest that would be paid with the payment of installments until the end of the loan. Another item to add is the one relating to the extinguishing penalty , which however can not exceed 1% of the remaining capital.