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What are the conditions to get a debt consolidation loan?

A debt consolidation is a solution – not always known – to group your different commitments. It allows you to pay one monthly bill instead of several, but also to lower installment payments. What are the conditions to get a debt consolidation loan? Explanation.

debt consolidation loan conditions

What is a debt consolidation loan?

A debt consolidation loan is a loan made to consolidate your debts. This solution consists in replacing your commitments into one loan renegotiated with better conditions. With a debt consolidation loan, it is possible to regroup:

  • Personal loans: for any amount from 3,000 to 150,000 Chf.
  • Leasings: car, moto, …
  • Credit card bills: Visa, Mastercard, … This can be specially useful if you can’t pay a bill in one payment.

Once the debt consolidation loan done, you pay only one bill, but also you save money, as the new loan will benefit from a lower rate, and sometimes a longer repayment period. Thus, it is possible to save up to 40% on your bills with this solution.

What is required?

From a practical point of view, a debt condolidation loan is considered the same as a personal loan. Thus, the conditions are the same:

  • To have enough budget to repay the new monthly installment.
  • Not to have any prosecution of bad credit history (ZEK codes, …).
  • To be Swiss or foreigner with a working permit (B, C, G, or legitimation card).
  • To be over 18 years old, and under 65.

An example

Mr Dubois wishes to consolidate two commitments:

  • A 11.9% loan for which he pays 1,079 Chf monthly. He still has 10,000 Chf to reimburse over one year.
  • A credit card balance of 3,000 Chf.

With a debt consolidation loan, Mr Dubois groups his loan and the amount of his credit card into one new loan of 13,000 CHF. He choose a 2 years duration, and gets a 7.9% rate. His new monthly payment will be only 585 Chf!

Who to call?

The best is to call a specialized agency or advisor. Indeed, it is important to ask an experienced interlocutor in order to get a low interest rate and the best conditions possible. CreditLoan, an organization that specializes in loans and debt consolidation loans, can help you to get a free non-binding offer!