Debt consolidation loan in ten questions
1) What is a debt consolidation loan
A debt consolidation loan is a financial solution which consists of taking out one loan to pay off other loans or debts.
2) What are the key benefits of this solution?
There are two main benefits to choose a debt consolidation loan: one is practical, the other is financial. Indeed, you will replace many monthly bills with one bill. The financial benefit is twofold. Not only you will benefit from a lower interest rate, but you also will be able to choose a longer reimbursement duration, which means a lower monthly payment.
3) How much saving to expect?
Everything depends on the interest rate you had before the consolidation, and the interest rate offered by the agency that propose the debt consolidation loan. Generally, such financial solution can easily allow to save up to 40% on the monthly bills. It is also important to address a serious organization (see for example CreditLoan – Debt Consolidation Loan).
4) What debts can one consolidate?
The agency in charge of your consolidation can take care in your place to liquidate.
- Your leasings
- Your personal loans
- The unpaid balance of your credit cards
5) How long does it take?
A consolidation loan can be divided in to three steps:
- The request itslef, which can take 2-3 days depending on the needed documents.
- Signature of the contract is followed by a legal period of 7 days.
- Finally, the repayment of your debts is done within 1-2 days.
Indeed, the full process, from the request to the debt liquidation, takes from 10 to 12 days.
6) Is it possible to get some extra cash?
Yes. Also, everything depends on the financial situation of the applicant. A better budget will allow to get more extra cash.
7)What are the conditions for a debt consolidation loan?
A debt consolidation loan follows the same conditions than a personal loan.
8) Is this solution available to independent??
Yes. However, the independant must be established in Switzerland since at least 1-2 years.
9) Is this solution available to people with prosecutions?
No. No agency will be able to offer a debt consolidation with someone with prosecution.
10) Is this solution available to foreigners?
Yes, but a valid working permit must be provided.
Article written by CrediLoan team: www.creditloan.ch