Debt Consolidation: Growing Demands and How to Apply

The reasons that push Italians to apply for a loan have changed over time. This year there was a net increase in the demand for debt consolidation: the increase in the first 10 months of 2018 was in fact + 3.6%.

Everything you need to know about debt consolidation loans

The demand for loans follows the evolution of the times and in an era where a loan is increasingly used to sustain important expenses, it may happen that you are faced with having to pay off more debts in the same period. It may also happen that a sudden expense emerges that leads to asking for a loan while having others at its own expense. In order to better govern and organize one’s finances, using a loan to pay off previously contracted debts can help solve a thorny situation. Debt consolidation refers precisely to the practice of compacting all debts contracted with different entities into a single installment, effectively liquidating them, thanks to the subscription of a new loan with a single institution. This allows to simplify the economic management, having a single installment, but also to renegotiate the financing at more advantageous conditions, delaying repayment times and perhaps lowering the installment. Under these conditions the interest rate to be paid could increase, but a debt consolidation loan is still an excellent solution if it is too complex to balance the finances and the solvency of the debts incurred is at risk. This is an increasingly widespread and routine operation but, concerning finances, it is important that every request for debt consolidation ( as explained here ), is presented only to authorized financial institutions and signed only after having examined several proposals.

How to apply for a loan to pay off other debts

In order to request a new loan to settle other debts previously contracted, it is necessary to examine one’s own job position, pay slip and the dynamics with which the requested loans have been repaid. If the reputation of the credit institution to which it is addressed is fundamental, that it must be trusted and authorized, so is that of the loan applicant, whose financial history must be immaculate and not present anomalies in the installments paid to cover other loans. In essence, all the loans received must always have been regularly paid, otherwise access to a loan to consolidate debts will not be possible. The non-payment of an installment to a credit institution causes, in fact, negative repercussions even on subsequent requests for financing. Precisely to avoid being marked as bad payers, when you risk being insolvent it is better to turn to an institution that takes charge of renegotiating the loans with the credit institutions that have disbursed them to pay them off. A new mortgage will be opened with lower installments and with a single institution. To apply for a loan, as well as read up online collecting information on the institutions that offer this service, it is good to contact a professional. The latter will carry out an analysis of the applicant’s financial situation so as to verify the existence of the conditions for accessing debt consolidation.