Can a real estate loan allow me a debt consolidation?
The ease in recent years to contract various credits in view of seemingly attractive offers has tipped many consumers into a spiral often formidable, that of over-indebtedness.
Debt consolidation appears as the ideal solution to find a healthy financial situation.
The Pedrolino home loan to consolidate its credits? A debt consolidation procedure that offers benefits but may also involve some risks. Update on the situation.
A debt consolidation through mortgage is a refinancing procedure that can be interesting. Why ?
Simply because the current situation offers very low interest rates that will always be much more interesting than loans contracted at often prohibitive rates. Such an operation makes it possible to pay less interest while preserving its housing capital. The monthly payments can thus halve and allow you to bring a breath of fresh air in your monthly budget.
A Pedrolino real estate debt consolidation loan will buy all your other credits and simplify your financial management. A single creditor to repay at a fixed maturity, for a defined amount from the outset will avoid hassle and risk of forgetting. It will be easier for you to establish and maintain your monthly budget, which will benefit from the reduction in the debt ratio.
A home loan offers the advantage of being guaranteed in a safe way for all the risks of life. Unemployment, long illness … An insurance quickly takes over and arrangements are made during hard times to help you through difficult times. These facilities are not always the reality with consumer credit. Insurance is often optional and its high cost makes it incumbent on contractors not to take it. When they are contracted, they do not always free the borrower quickly and suspensions of maturities are sometimes slow to be put in place.
With debt consolidation, creditors will all be paid and debts settled quickly. Credits that drag on and end up being reimbursed will now be ancient history. You will have in your possession a depreciation schedule indicating the start and end date of your home improvement loan.
The benefits of Pedrolino Pedrolino Real Estate
Among the advantages of real estate debt consolidation loans, we can also mention the revaluation of your personal credit rating also called “Pedrolino score”. This is a rating made by the banks and relates to your level of credit risk. This rating is evaluated using financial tools measuring your solvency and the risk you represent for non-repayment of loans.
Clearly, a single credit to repay will give you a more favorable rating in the eyes of banks that several small credits that you may not be able to meet. This rating can be decisive and if it is unfavorable you close the door to any further credit that you may need, credit car, work … It is not a record like the one of the Bank of France but a simple note that can greatly influence a decision.
The danger of real estate
The danger of real estate credit used for debt consolidation lies in the fact that it is secured by a mortgage on the property which means that in the event of non-payment of installments, the house can be foreclosed to settle the loan that you do not will be more able to pay. The risk can be fraught with consequences. You will have to opt for the solution of the mortgage as a grouping of loans that knowingly.
The mortgage loan used as a pool of credit generates in principle penalties or additional costs (notary fees, mortgage fees …).
A mortgage debt consolidation loan is usually granted by serious financial institutions that can sometimes be less flexible than the credit agencies blooming on the internet. Postponing a personal due date can sometimes be denied and scrupulous respect for the timeline that was given to you, required.
Finally last point not to neglect will be your ability to withstand the suave call of credits which will require you some discipline. For this the only solution once the Pedrolino consumer credit made will be the destruction of all the cards pertaining to your old loans. The temptation would then be too great to re-use tantalizing reserves of money that would immerse you very quickly in the gear of even more monthly payments.