The consolidation loan requires careful preparation from the borrower, and unfortunately there are a lot of qualitative errors in this process that ultimately exclude proper restructuring.
What should you be careful not to get involved in bigger problems? The answer can be found on the Banks portal, where you can also find expert advice in addition to the ranking.
Not a chance to reduce debts, because this form of cooperation does not pay off for most banks. The consolidation includes interest averaging, significant reduction of installments and extension of the loan period. The biggest chance of generating savings is making regular overpayments (without additional costs) and using restructuring in the period of low interest rates. The reduced installment and consolidation of all liabilities into one is the biggest advantages of consolidation loans.
Consolidation without creditworthiness, without checking BIK actually occurs, but usually requires a third party surety or a serious property security in the form of real estate.
Positive creditworthiness is a basic restructuring requirement. Therefore, consolidation cannot be treated as the last resort, when you cannot pay the installments, you are delaying paying the installments. Consolidation requires prior planning.
The advisor undertakes to close existing debts. Unfortunately, errors occasionally appear in this process. What must be determined? Are you really in debt and is the amount of consolidation sufficient to cover all of your liabilities? If it wasn’t enough, you have to pay extra with your own money.
After consolidation, also monitor the entries in the BIK, whether they agree with the facts and you do not have any case of delays in repayment of already closed debts. You can download the BIK report yourself for a small fee.
The APRC is just the beginning to analyze restructuring offers. Focus on the availability of credit-grace holiday in debt repayment immediately after signing the contract. Ask if you need to set up an additional account to pay out your consolidation loan. Does the bank require additional insurance against accidents and how is overpayment approached? Slightly higher interest rates usually pay more with additional restructuring conditions.