If what you need is to better control the payment of your debts, and you need more liquidity in your economy, the consolidation of debts is presented as a good alternative.
The term consolidates or unifies means to group all the debts into one, with which we can define the consolidation of debts in the process by which we can convert all our monthly payments into a single payment.
In this way, we will be able to reduce the monthly payment that we will pay, in order to be able to face all payments in term and in a more comfortable way.
In the market, we can find several specialized companies that offer the service of debt consolidation, and that usually offer a low-interest loan with a longer term than usual so you can return the money. Also, as additional services, these companies can negotiate with the creditors a reduction of the initial debt, and can even help you recover your credit score.
With the consolidation of debts, you can group all types of debts, such as personal loans, mortgage loans, credit card debts, loans for studies, and any other type of credit or loan that we may have.
It is very important to bear in mind that to consolidate debts a material guarantee is required, such as a house or a car, and to have stable monthly income to be able to repay the loan.
The great advantage offered by debt consolidation is that on many occasions the financial institution offers us a new mortgage to pay off other debts, and since the interest rate on mortgages is much lower than that of personal loans or credit cards, this system will allow us to save a lot of money in interest, so your debt is reduced.
Finally, remember that when reducing the debt the only monthly payment that we will have to pay will be lower than the sum of all the current installments, although with a longer term.
Mortgage Debt Consolidation
Kadita is one of the entities that allows you to reunify debts or credits when hiring your Mortgage Debt Consolidation.
The financial product offers you the possibility of financing up to 80% of your total debt at a variable interest rate of Eudora + 1.25% (2.54% APR), and with a maximum repayment term of 30 years.
It is an exclusive product for those who decide to change their current mortgage in another entity and transfer it to Kadita.
In this way, if you intend to change your bank mortgage, and also looking to pay all your loans in one, you can access this product without opening fees or partial cancellation but requires you to hire 4 linked products :
• Home insurance
• Life insurance
• Payment protection insurance
• Direct payroll and 3 household receipts
It should also be noted that one of its great attractions is that it allows obtaining additional liquidity of 30,000 euros.
A good alternative to reunify your credits, although limited to those who have a mortgage in another entity and is willing to change it to Kadita.