Regroup loans for financial rest
Regrouping loans is one way in which you can create financial peace. Regrouping loans means that you will bundle all loans that you have outstanding as a person. The result is that you only have one loan left. In many cases, you have to pay a lower repayment for that one loan than added up for all individual loans. That way you can get a little more room in your finances. Regrouping loans is something you have to think about carefully. Because in some cases it is better to let the loans continue to exist separately.
Regroup loans for better overview
As a consumer you can deal with a large number of loans. Such as financing for a car, a personal loan, mail order credits, credit cards, loans for the purchase of a smartphone, etc. After a while it becomes difficult to gain sufficient insight into this. It is difficult for consumers to keep an eye on what a sensible action is. For example, many consumers make the decision to extend a revolving credit, when it essentially only costs them money. One way to regain the overview is to regroup loans.
Who helps with regrouping loans?
Any financial institution that also acts as a lender can help regroup loans. As a consumer, you can turn to such a lender directly for advice, but you can also use an independent advisor. If you present your situation to him, he will contact various lenders for regrouping loans. All those lenders will get started with your loans. Based on the advice of the independent advisor, you can make a decision whether you want to keep your loans or whether you want to regroup loans.
Does regrouping loans cost money?
Regrouping loans means that all loans that you have outstanding are bundled. This means that existing loans are sometimes bought off and placed in a new loan. In other cases, a loan can be taken over at no additional cost. However, keep in mind that regrouping loans typically creates a greater debt than the sum of all existing loans. Nevertheless, it can be nice to proceed to regroup loans, because you pay a lower monthly repayment with the new loan. However, you are repaying for a longer period. In short, regrouping loans costs money.
Why is regrouping loans a solution?
You have already read that it is usually more expensive to bundle different loans into one larger loan. Yet many consumers do this. There are two reasons for this. First, regrouping loans provides a better insight into the outstanding amounts. Second, it gives a little more financial leeway. Because often the total amount of the repayment of all individual loans is higher than the repayment of one bundled loan. The objection that you are then repaying for a considerably longer period outweighs the acute financial need.
When should you consider regrouping loans?
As a consumer, regrouping loans only makes sense if you already have a number of loans. You cannot take out a new loan if you have no debts yet, for example to finance a repair to your home. You simply have to take out a new loan for that. If your existing loans are gradually getting over your head, regrouping is an option. You can easily end up in such a situation if you already have a number of loans and are forced to take out more loans due to setbacks. Debts on a credit card also count when regrouping loans.
The process of regrouping loans
If a consumer asks to bundle his loans into a new loan, the relevant lender will first carefully check which loans are involved. He contacts all individual lenders to determine whether the loan in question can be taken over and under what conditions this is an option. After that, the lender will add up all the loans plus lump sums and assess whether regrouping loans is a realistic option. With the result of his research, he returns to the consumer.
Which loans should you not regroup?
Interest must be paid on each loan. Loans to finance a new car are known to have very favorable interest rates. The interest for a personal loan or a revolving credit is much higher. And if you have a credit card with debt, the interest rate is very high. In general, it is advised not to place a loan for financing a new car in a regrouping loan. There is no financial benefit to be gained from this. Regrouping is often a good option for the other loans, even if there is a significant redemption payment.
Regroup loans before the bailiff comes over
Consumers who are under so much financial pressure that they cannot make all of their monthly installments should seriously consider whether loan regrouping can provide relief for them. Because if the debts increase because repayments are no longer Demorei, you will have to deal with fines. If it gets to the point where the bailiff comes to the door, the costs will go up all the time. It is often possible to prevent this with a regrouping of loans. The lenders where you have taken out your loans will be happy to cooperate.
Do debts increase due to loan regrouping?
The added number of loans from a consumer often yields a total amount. If this is placed in one new loan, it will be a loan for an amount that is higher than the original total amount. This is mainly because the new loan has a longer repayment term than the individual loans. Because of this longer repayment period, more interest must be paid, but the repayment amount is lower. In fact, as a consumer, you pay for the extra time you get to pay off your loan.
What are the benefits of regrouping loans?
As a consumer, you get clarity when regrouping loans. Firstly, after the regrouping, it becomes clear exactly how much interest is being paid. It also becomes clear what the remaining term of the loan is. When regrouping loans, it also becomes clear what the additional costs are that you as a consumer have to take into account. Finally, a bundling of all loans provides a good insight into the monthly amount of repayments that must be paid.
Regrouping loans reduces stress
Anyone who has many loans outstanding with all kinds of lenders can experience tension as a result. Especially if it turns out that it becomes difficult to pay all those bills every month. With regrouping loans, that stress will disappear. Because because your financial situation is examined and a repayment and a term are chosen that match your income, you see a way out again. The situation thus becomes much less hopeless. Regrouping loans is therefore known to provide a lot of peace for consumers.
Advice on regrouping loans
Virtually any lender is capable of regrouping loans. However, you would like the regrouping to be done by a party that does not charge too high interest rates itself. For advice that suits your financial situation, it is therefore useful to contact an independent financial advisor. He will present your situation to a number of lenders. You can of course also ask such an independent financial advisor online for advice and make a choice from the various parties that come up with an offer for regrouping loans.