Loans consolidation: tips for not making mistakes

Is it possible to consolidate all loan installments into one course in one installment? Well yes, just request the loan for consolidation debts.

If the installments for the supplies, loans and mortgages are too expensive, it is better to opt for the consolidation of loans , an interesting product introduced by the Italian law with the DL. 212/2011 to avoid excessive over-indebtedness of Italian families in a period of economic crisis and financial disequilibrium.

To find out more, we have gathered in this dedicated guide all the useful information to sign up for loan consolidation. Here are all the useful tips to avoid mistakes.

Consolidation loans in one installment: what is it and how does it work?

Too many loans in progress? Are the mortgage repayments added to those of the loans too expensive? If you can no longer afford the costs and can not meet the different deadlines within a month, consider applying for loan consolidation.

What is it? It is nothing more than a loan that allows you to cope with a certain number of installments also related to different loans, merged together into a single installment of a lower monthly amount compared to the sum of the installments of loans on and underway.

With the signing of debt consolidation you can benefit from a lower interest rate and a longer repayment schedule.

This makes the extinction of the debt far more sustainable and more manageable, weighing less on the budget of each household, forced each month to pay different installments to honor the obligations assumed.

Thus, with the request for debt consolidation, it is possible to pay off the previous loans with the bank or the financial company that accepts to become the sole creditor of the loan.

Loan consolidation: who can apply for it?

Who are the instant subjects who can apply for loan consolidation? All natural and legal persons who already have a loan, loan or assignment of a fifth contract can request the consolidation of debts to improve their income conditions making them much more sustainable or guaranteed.

It can be requested by public or private employees, pensioners, artisans, self-employed and even unemployed.

Loan consolidation contract

Before signing the debt consolidation contract , it is advisable to read the contents and the contractual and economic conditions contained therein.

According to current legislation it must contain:

  • data and contacts of the financing institute,
  • amount of financing,
  • maturities and amounts of installments (amortization plan),
  • delivery mode,
  • interest rates,
  • prices and conditions applied (including the rate of late payment),
  • required guarantees,
  • any insurance coverage (optional).

The advice is obviously to turn to credit professionals in order to work with the credit counselors of Bank who will identify, for you, the best proposals on the market.