Loan consolidation: tips to avoid mistakes

Is it possible to consolidate all loan installments in a course in one installment? Well yes, just request the loan for debt consolidation.

If the installments for the transfers, the loans and the mortgages are too many and onerous, it is better to opt for the consolidation of loans , an interesting product introduced by the Italian law with the DL. 212/2011 to avoid an excessive over-indebtedness of Italian families in a period of economic crisis and financial imbalance.

To learn more, we have gathered in this dedicated guide all the information useful for underwriting loan consolidation. Here are all the useful tips to avoid mistakes.

Loan consolidation in a single installment: what is it and how does it work?

Loan consolidation

Too many loans in progress? Are the mortgage payments plus those of the loans too expensive? If you can no longer bear the costs and cannot meet the various deadlines within a month, consider applying for loan consolidation.

What is it? It is nothing more than a loan that makes it possible to meet a certain number of installments related to different loans, merged together into a single installment of a lower monthly amount than the sum of the installments of loans opened and in progress.

By subscribing to the debt consolidation it is possible to benefit from a lower interest rate and a longer repayment schedule.

This makes the extinction of debt far more sustainable and better manageable, weighing less on the budget of each household, forced every month to pay different installments to honor the obligations assumed.

Therefore, with the request for debt consolidation, it is possible to extinguish the previous loans with the bank or financial company that accepts to become the sole creditor of the loan.

Loan consolidation: who can request it?

Loan consolidation

Who are the instant individuals who can apply for loan consolidation? All natural and legal persons who already have a loan, loan or salary-backed loan agreement can request the consolidation of debts to improve their income status, making it much more sustainable or guaranteed.

It can be requested by public or private employees, pensioners, artisans, self-employed and even unemployed.

Loan consolidation contract

Loan consolidation

Before signing the debt consolidation contract , it is advisable to read the content and the contractual and economic conditions contained in it.

According to current legislation, it must contain:

  • data and contacts of the financing institution,
  • amount of funding,
  • deadlines and installments (repayment plan),
  • delivery mode,
  • interest rates,
  • prices and conditions applied (including default rate),
  • guarantees required,
  • any insurance coverage (optional).

The advice is obviously to turn to credit professionals to be able to work with Doctor ‘s credit counselors who will be able to identify, for you, the best proposals on the market.

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