Consolidated debt loan definition- What are debt consolidation loans?

There is talk of over-indebtedness when there is an imbalance between economic availability and debts incurred. It can happen for example if over time different installments are added to pay or to meet an unexpected expense. The situation is more common than you think and can be easily solved with a dedicated solution: Debt Consolidation. Let’s find out what it is and how it can help us find serenity.

What are debt consolidation loans?

The economy forces people to rely on loans more. For that reason, the debt consolidation may help us because it makes possible to combine all the loans contracted into a single loan. Existing debts are effectively extinguished by optimizing the time and means of repayment. In addition to simplifying life, replacing different deadlines with a single monthly payment, this solution allows you to renegotiate the debt, obtaining more advantageous interest rates when possible, but also to recalculate the amount of the installment and the duration of the loan, adapting it to our real economic availability.

How to apply for Debt Consolidation

To apply for Debt Consolidation it is not necessary to turn to the banks that have granted the loans in the past, but you are free to rely on a different credit institution. The documents to be submitted to assess the start of the case are those related to the loans in progress, a certificate of income (pay or pension), identity card and social security number.

After analyzing the economic situation and calculating the amount of the amounts to be repaid, the institution will propose a new amortization plan with a single monthly payment. You can choose to lower the rate, perhaps by extending the repayment time, looking for the most sustainable amount for the applicant. Once the deductions in progress are assessed and the right solution is given, the credit institution will pay off all, or part, of the debts, effectively starting a new loan.

Consolidation Debts with Assignment of the Fifth

The most advantageous solution for workers and retirees who want to resolve over-indebtedness is the Consolidation of Debts with Cession of the Fifth. This particular form of loan ensures fast times and various benefits, let’s see them in detail.

Payments always respected

The monthly payment is deducted automatically from salary or pension, avoiding the risk of delays and unpaid debts.

Single and light installment

All debts contracted are united in a single monthly installment, always within our reach. As the name indicates, with the Cession of the Fifth the installment never exceeds one-fifth of the salary or pension, always remaining within 20% of the net salary or pension.

No guarantors or mortgages

The only guarantee required is salary (or pension), nothing else is needed. For the same reason, loans with Lite Lender are also granted to those who have had solvency problems in the past, such as bad payers and protesters.

Complete protection

The Debt Consolidation with Lite Lender also protects our family, because it includes a global insurance coverage against all risks.

Are you thinking of renegotiating old debts and want to know all the possible solutions? Loans & Financing, historic agent Astro Finance – Best Bank Group, has been operating in the credit sector for over 20 years and specializes in loans with Lite Lender. Make an appointment with one of our consultants or request a free quote!