Consolidate loans means uniting all current loans into a single loan- recommended url. With this maneuver you can combine all the financing you have pending and get a different interest on a loan. In our comparator, you can learn how to reunify debts without a mortgage with the best information.
What does it mean to reunify debts without a mortgage?
Reunify debts allows us to group all the loan installments and cards that we have in force in only one. Thus, we only owe money to a company, being able to deal more easily with their monthly payments and in a longer term.
The regrouping of debts can be done through several entities, such as banks, private equity companies or financial intermediaries.
The most frequent method is to resort to the entity where we have contracted the loans.
In case we have outstanding debts with several companies, it is best to go to the one that is a creditor of our highest debt.
Until a few years ago, it was necessary to provide a valuable property as a guarantee of reimbursement to request financing, whether it was a property or a good such as a car or a jewel. Another option was to put a third person as collateral. However, today it is possible to take out loans with a personal guarantee with which to reunify debts without a mortgage.
These credits are granted after an analysis of our income and our spending habits and are usually requested to pool debts from other loans or deferred payments with credit cards. In the following video, our expert explains in less than a minute what is the reunification of debts :
How and with whom to request a reunification of debts?
To begin the process of debt reunification it is important that we stop to think in several aspects:
1. Know our current situation
Therefore, we will have to make an assessment of all outstanding debts and a check that we do not appear in a delinquency database.
If we appear in ASNEF or in any other list of defaults, the options that we will have to manage to reunify debts without a mortgage will be considerably reduced, although we will still have possibilities to carry out this process.
2. Choose the entity according to the origin of our debts
If all are from the same entity, as in the case of a bank with which we have contracted our mortgage and a credit card, the best option is to go to an office of the entity and negotiate a restructuring of the debt.
If, as we have said, our debts come from several entities and have several amounts, the best option will be to request a reunification of debts in the company in which we have a current loan, requesting a capital increase of this.
Finally, if we have several small debts, there are private lenders who offer specific loans for the reunification of debts.
3. Negotiate with the entity the regrouping of debts
For this, it is necessary to know in what financial situation we are, because our income and fixed expenses will allow us to know what is the monthly payment that we will be able to face. In addition, we must not forget that when paying the monthly installments we will be paying a percentage of the interest generated by this new loan.
What do I need to group debts without guarantees?
If we do not want to deposit a guarantee of reimbursement in the form of real estate or of any valuable possession, it is necessary that we provide another type of proof that we will be able to pay the monthly installments of the loan. Next, we can see in the image the different options we have to confirm our ability to repay:
With fulfilling one of these conditions of the image and we can access a loan to reunify debts without a mortgage. However, some banks and financial entities will require us to comply with three or two of them to grant us financing.
If you go to a bank, you may also ask us to direct your payroll into a checking account, while private equity companies may ask us to take out payment protection insurance in case there is a change in our working life that prevents us from taking on the monthly installments of the loan.
Benefits of the credits to reunify debts without a mortgage
When we initiate a debt reunification process without having a mortgage, we will be able to pay a fee of an amount lower than the sum of the previous monthly payments, even though, for that, we will have to extend the term.
A practical example of a debt reunification without a mortgage
Although we can reduce the monthly payments, the repayment term of the new loan will be longer. Due to this, the interests will be generated during a longer period and we will end up returning more money than with the previous installments. With the following table, we can see the characteristics of this operation to assess its advantages and disadvantages:
|Consumer credit||5 years||€ 5,000||10% TIN||106.24 euros|
|Car loan||4 years||€ 10,000||7% TIN||239.46 euros|
|Credit card||1 year||€ 1,000||20% TIN||100 euros|
If we review the previous table, we can verify that the sum of the different installments amounts to 445.70 euros per month, which we will have to reimburse for a minimum of one year. When we have amortized these loans, we will have paid 2972.71 euros in the form of interest generated.
|Credit to reunify||7 years||€ 16,000||eleven %||273.96 euros|
However, if we reunite debts in a single loan with a TIN of 11%, we will pay a single monthly payment of 273.96 euros and we will have a maximum of seven years to repay the money. However, the interest we will pay for this decrease in the quota and the increase in the term will make us pay 4039.84 euros more in interest than when facing the uncollected quotas.
Sometimes, the company that grants us the loan for this purpose will be in charge of paying off the debts when we sign the contract. Other times, the lender will give us the capital and we will be in charge of managing the reunification of the debt amortizing the rest of the loans or payments of the card.
It is important to read and understand perfectly when signing the contract to reunify debts without mortgages since it shows the details of this regrouping.
What costs does it have to reunify debts without a mortgage?
It is important to know the costs derived from reunifying debts to calculate it and to know if this operation will be profitable or not. Often, we can request the money that these operations cost along with the reunification loan so that we can pay for the following operations:
Payment of commission for early amortization of the loans that we are going to reunify with the new loan with which we will cancel the other debts. This commission will be of a maximum of 1% of the remaining capital if there is more than one year of validity of the loan and of 0.5% if we have less than 12 months left.
Commission for the opening of the loan that we will be hiring to reunify debts without a mortgage. This commission does not have to exist but usually ranges between 1% and 3% of the total capital of the loan.
- Fees of the mediating agency. If we carry out our debt reunification through a financial intermediary, we will have to pay the fees for the services of this company, which may vary depending on the company we go to.
These payments are not common to all the loans, because we will have to check that the one we are going to request includes or does not include these extras mentioned above. Also, we can avoid paying opening fees and/or study if we resort to a loan without commissions for the reunification of debts.