Debt consolidation of a loan provides an opportunity for a borrower to repay a loan on more loyal terms of repayment of debt, by changing the order of repayment, which is stipulated in the loan agreement. Debt consolidation is applied when a borrower faces financial difficulties. When its application is possible, and under what conditions it is carried out, we consider this article.
- Debt consolidation
- Terms of consolidation
- Sberbank loan and its consolidation
- How to write a consolidation application, sample
- Mortgage consolidation
- consolidation agreement sample
Modern life is very difficult to imagine without credit. Almost any person at least once in his life, one way or another, faced credit operations and used a bank credit card. However, when receiving a loan, one should not forget that it will have to be returned, and this obliges to plan the family budget and take care of your own financial viability.
However, sometimes there are situations in which the real financial capabilities are revalued at the time of the loan, which in the long term guarantees the emergence of difficulties with its return. What to do in this situation?
Once in such a situation, in no case can not panic. A bad solution would be to avoid contacting the bank with the borrower, or to refuse to solve the problem, letting everything go to chance. Be sure to contact the banking organization with which you have a loan agreement, and try to explain the situation in which you find yourself. Most likely, bank employees will meet you.
Debt consolidation, has a lot of options. You will only have to choose the most suitable for you terms of its implementation, from those proposed by the bank. In this situation, banks can offer:
- deferment of loan and interest payments;
- change of the debt repayment schedule and the repayment system from annuity to differentiated;
- write-off of fines and penalties;
- transfer of debt from one loan currency to another;
- extension of the term for which the loan is issued.
The bank that provided you a loan may not always offer all the listed debt consolidation options. As a rule, these are just some of them.
Terms of consolidation
It is definitely more profitable for a bank to agree to debt consolidation and get its money back, even if on slightly changed conditions, than to incur court costs and spend time on litigation. Despite this, the bank, to allow debt consolidation, agrees not to every client. To do this, there must be certain conditions.
- job loss, protracted illness, disability, in addition, they must be documented. The confirmation can be medical documents, certificates from the employment center and from the place of work, etc .;
- no consolidation was provided to the client before;
- the borrower always made timely payments and complied with the terms of the contract;
- the borrower must be no more than 70 years old;
- loan security (the bank is more willing to provide installments for mortgage and mortgage loans than for unsecured loans);
The obligatory documents required to submit a passport, credit agreement, as well as a statement. If necessary, the bank may request other documents.
debt consolidation statement . Such a statement is an analogue of the questionnaire, the form of which is established by Sberbank, with the difference that it is made up in an arbitrary form.
In such a statement, you must specify the data identifying the identity of the borrower, the source data of the loan agreement, the reasons for their financial insolvency and possible options for changing the loan agreement and the terms of loan repayment.
Mortgage loan consolidation
In the most difficult situation there are mortgage borrowers, as they have risks of being homeless. If financial difficulties are caused by a general crisis, then the price of real estate is likely to have fallen, so the implementation of the collateral in this situation may not fully cover the entire debt to the bank. In such cases, and housing can be lost and the loan will remain not repaid.
In addition, the mortgaged property, as a rule, is the only housing of the borrower, which makes its implementation very undesirable. Therefore, the only right decision in this situation, both for the borrower and for the lender, is to agree on consolidation.