The debt consolidation loan, also known as refinancing, is a financing solution that allows the payments of several personal loans to be combined in a single monthly installment, facilitating the resolution by amending the amortization plan, granting a new and monthly deadline only. With this type of loan there is also the possibility of obtaining liquidity to support the expenses that may have been added following the stipulation of the loans.
With the debt consolidation loan, it is possible to eliminate the different installments with different expiration and combine all the amounts due in a single amount, a sort of maxi installment, with the possibility of making a single payment and get out of a difficult economic situation by increasing the plan amortization and reducing the amount of the monthly installment.
Debt consolidation loan with bad credit: 100% online
The debt consolidation loan belongs to the category of personal loans and can be requested by workers with an open-ended contract, fixed-term contract based on the duration of the loan repayment plan, by pensioners and by subjects reported to the CRIF, bad payers, protested.
This is why this financing solution is the only one to solve the most common problems related to the difficulties in resolving too many monthly installments or because, during the course of the financing, other expenses were added that had not been counted at the time of the subscription of the contract. In this way, it is possible to rearrange the management of your monthly installments of each ongoing loan and evaluate the amount best suited to your needs even if you are protested, bad payers or reported to the CRIF.
If you have been reported to the CRIF or are part of the protest category, any personal loan solution is not so easy to obtain while the debt consolidation loan with bad credit online is easier to obtain. You can do it on your computer. Debt consolidation loan with bad credit online makes it possible to reduce the monthly installments by increasing the amortization plan, so it is possible to have greater guarantees in the restitution.
Debt consolidation: HOW CAN YOU PAY THE MONTHLY installments REGULARLY
Debt consolidation is the only solution for protesters and bad payers not to incur penalties or foreclosures by seeking resolution in a real new loan, recalculated based on economic needs and new installment sustainability criteria. Debt consolidation is usually required when one is in difficulty in paying monthly installments, one or two or even three, and this is the most difficult moment as the beneficiary of the financial has already been reported for insolvency. With a protest or an insolvency report in a previous payment, the situation is even more complicated.
The delay in payment of even one installment entails the automatic registration in the SIC – Credit Information Systems – or the best known and feared CRIF or Eurisc. In any case, until the delay in the payment of 2 consecutive monthly installments, only the notification starts which does not completely damage the creditworthiness of the subject but it is necessary to settle the debt to avoid that the report is confirmed. Precisely, in this case, a new loan repayment plan is drawn up, with a new installment, for a new amortization plan based on one’s own spending possibilities: debt consolidation.
Debt consolidation: CAN YOU REALLY REQUEST ALL?
It is necessary to consider, however, that although the debt consolidation solution is designed for those who are in financial difficulty and need to balance their economic situation, many banking institutions do not accept individuals with more than two unpaid installments as they are declared bad payers, despite having been in a previous loan and not in the current one.
Reporting to the CRIF as a bad payer sometimes implies the refusal to obtain a loan for Debt Consolidation, leaving only the solutions to resolve financial debts with the request for the transfer of the fifth and the loan with a delegation of payment, the only loans that allow deducting the sums due directly from the monthly salary. The operation is carried out by the employer for whom the recipient of the loan has no power to pay the due installment – ” willingly or unwillingly it cannot be subtracted “.
When debt consolidation cannot be achieved: SOLUTIONS
Both the salary assignment and the loan for payment are part of the category of secured loans as they are guaranteed by the payment of the sum due by the employer and for this reason they are the perfect solution for the reported subjects Crif, bad payers or protesters of the request of debt consolidation. The conditions for entering into debt consolidation follow the following criteria:
- amortization plan up to 10 years;
- lower interest rate than the average of previous loans in progress;
- the stipulation of employment and life insurance.
Debt consolidation for bad payers: SIMULATION
To better understand, below we propose a simulation of a debt consolidation loan to a person reported to the Crif with two unpaid monthly installments equal to the sum of 10,000 USD total of residual capital to be repaid:
- 150 USD personal loan;
- 150 car loan;
- 300 USD another installment (paid, for example).
The total to be paid monthly is 600 USD which weighs heavily on the family condition: it must be thought that in fact, the fifth installment must never exceed 1/5 of the net salary. This means that with a salary of 1,200 USD one cannot but obtain a maximum monthly payment of 240 USD; with a monthly remuneration of $ 1,500 net, we cannot but obtain a maximum transferable monthly payment of $ 300.
Our subject in question, making a brief calculation, should have a net monthly payment of at least 3,000 USD – based on the maximum threshold transferable with the assignment of the fifth). Precisely for this reason, it is necessary to recalculate the installment to be paid which must comply with the criteria of the assignment of the fifth – maximum 1/5 of the net monthly salary – making a new calculation also of the amortization plan: if the installment is reduced, the plan repayment must inevitably increase.
SIMULATION TABLE OF CONSOLIDATION DEBTS FOR BAD PAYERS
To summarize, also observe the following table which summarizes the main steps of the simulation of a situation of three loans in progress by a subject with Crif reporting and in difficulty in paying monthly installments as they do not correspond to the real sustainability of the transferable amount:
|FINANCING IN PROGRESS OF THE SUBJECT WITH MONTHLY REMUNERATION OF 1,800 USD||TOTAL MONTHLY INSTALLMENT||MONTHLY AND PAYMENT REMUNERATION: ASSESSMENT|
(SUM TO EXPAND TOO HIGH)
Early repayment of loans: THE EXTINGUISHING COUNT
To be able to apply for debt consolidation it is also necessary to carry out the extensive counting of the total residual sum of all the loans in progress in order to calculate again the amount of the monthly installment with a new amortization plan.
The extinction count includes the sum to be paid to the bank for the resolution of the debt following the obtaining of the necessary capital with the debt consolidation loan. Only after having paid the residual capital of all previous loans can the new repayment plan be resolved with the new monthly installment. In the extinguishing payment, the amount to be paid is free of interest not accrued during the amortization period still to be reached. Based on this criterion, the sum of interest to be paid is calculated through the TAN – the nominal annual rate – indicated in the loan contract signed.
To this type of interest not accrued on the financial capital must be added the interest payable which constitutes the sum of daily interest on the residual capital calculated for the period of time between the payment date of the last installment to the last day of extinction counting. If the last installment was paid on the 15th of the month and the count was calculated at 30, the interest payments correspond to the respective accrual in this 15-day period.
Once the amount of interest to be paid has been calculated, the sum of the extinguishing penalty must be added, which cannot exceed 1% of the residual capital: in our case, on an amount yet to be paid of 10,000 USD, the penalty of extinction in advance cannot exceed 100 USD. The only limitation of the payment of the amount established in the extinction count is that the amount must be paid within a maximum validity date of the same document.
THE EXTINGUISHING COUNT: CALCULATION TABLE OF THE EXTINGUISHING COUNT
To better understand and summarize how to carry out the extensive calculation of all the loans in progress and evaluate the convenience of accepting the subscription of a loan for debt consolidation, also observe the following table which shows the amounts to be paid in the process of extinguishing the debt and the calculation of the new monthly installment:
|EXTINGUISHING COUNT FOR DEBT CONSOLIDATION||RESIDUAL SUM OF THE EXTINGUISHING COUNT||INTEREST CALCULATION|
|RESIDUAL SUM OF ALL THE FINANCES IN PROGRESS TO BE PAID||
Early repayment of loans: My-Cashe REQUEST FORM
In the event of early repayment of a fifth or proxy loan, the total amount to be paid is calculated on the basis of the criteria described above and the lender itself issues the release letter confirming receipt of the sum extinguishing its debt towards the subject. If, on the other hand, you wish to extinguish all the loans in progress because you have the required liquidity, you must ask the lender of the financed capital to carry out the extinguishing count on a future date up to 30 days using the following my-case form in which they are indicated the details of the stipulated contract.