More and more people in Italy have several active loans at the same time. Thus you find yourself with multiple installments to pay and each with its own interest rate: from the mortgage for the first home purchase to the car loan, from the financing for medical expenses to the mortgage for home renovation. What many people do not know, however, is that there is a form of credit that allows you to unify all the ongoing loans into one with a much lower installment. We are talking about debt consolidation mortgage . Let’s try to understand better how it works and what its characteristics are.
Debt Consolidation Mortgage: How Does It Work?
The debt consolidation mortgage is a type of loan that allows you to combine all the ongoing loans and all the maturities into a single loan. This will allow you to ease your debt, without worrying about all the installments to be paid . How does it work on a practical level? All outstanding debts will be paid off with a mortgage and all the installments merged into one with a more advantageous rate and a lower monthly amount. Through the mutual debt consolidation you can manage your income more lightly and you will face everyday life with less worries.
Debt Consolidation Mortgage: Are there any prerequisites or can it be requested by everyone?
The debt consolidation loan has no particular limitations, it can be requested by practically everyone and it will be the single Bank or Financial Institution to decide whether to approve the request or not after a thorough credit screening of the applicant . However, what you need to know is that, being a medium-long term loan, the mortgage is expected to be registered on a property owned by the applicant. Alternatively, if you do not own a property, you can consider consolidating your debts with the Employee loans product.
It is clear that if you already find yourself in a situation of late payment of the loans in progress and you are classified as bad payers, it will be very difficult to obtain a debt consolidation mortgage. However, if you take the right timing, the debt consolidation loan may prove to be the most suitable product to lighten your financial exposure.