MonthMarch 2019

How to write an application for consolidation of interest?

 

An application for consolidation of interest is a document that we should submit to the hands of our creditor when we do not deal with the repayment of interest for the debt incurred on our side. Let’s remember to write a letter about debt cancellation yourself. An individual presentation of the problem and arguments will be better taken away. Let us not forget about the conclusion in the application for debt cancellation of the most important information, such as: creditor’s details, assurance of timely repayment of subsequent installments or attachments confirming our request.

Letter of interest consolidation – when should we write it?

When applying for a loan in installments or a bank loan, we incur various costs in connection with granting us additional cash . One of them is interest, i.e. payment for granting us financial obligations (capital interest). Interest can also be charged to us when we are in arrears with payment (penalty interest).

Statutory interest for delay in payment is 7%. on a yearly basis. There is a chance that the debtor will handle their repayment. However, if the interest relates to several large loan installments, we may have a problem with their settlement. In this situation, we can draw up a letter of interest consolidation addressed to our creditor. However, we must bear in mind that the lender is not obliged to accept our letter of interest regarding the debt cancellation. The decision depends on his good will.

How to write a debt cancellation application?

How to write a debt cancellation application?

The application for consolidation of interest should contain several basic elements. Belong to them:

  • customer-debtor data;
  • details of a private creditor, loan company or bank;
  • determination of the legal relationship that results in the debt and its interest – for example a loan agreement for 6,000 PLN for 6 months;
  • the exact amount of debt and the penalty interest resulting therefrom;
  • motivating an application for consolidation of interest – it may be a difficult financial situation, job loss or inability to work;
  • ensuring that the remaining installments are repaid in a timely manner or that the repayment terms are negotiated – this shows the good will and willingness of the debtor to cooperate;
  • attachments – all documents that confirm the motivation of the application,
    request for positive consideration of the application.

Although there are patterns on the Internet for debt cancellation, it is worth drawing up such a document by yourself. Personalizing the application on the basis of important arguments is always better than using a ready-made one.

Application for consolidation of interest did not work – what to do?

When applying for interest consolidation, we must be aware that the creditor does not always cancel the debt. There is no such obligation, even if our creditworthiness is very low . In this situation, there is nothing else we can do to use the help of relatives and collect the necessary amount to pay the debt. We can also use a private loan, which will be granted to us on our terms. However, it is worth remembering that another loan in case of a negative credit history may lead to the creation of a spiral of debt .

Persons who have submitted a letter to the creditor for remission of debt increased as a result of high interest may apply to the Financial Ombudsman. He will thoroughly review our case and tell you if we have a chance to reconsider the application for interest consolidation.

Loan consolidation – simulation

Purchase of credits

Companies offers you the possibility of grouping several outstanding credits like a real estate loan, a consumer credit or a revolving credit … and possibly a new project. Real estate loans are detailed in the section “The purchase of real estate loans “.

With such a purchase of credits, you manage your budget more simply and thus more efficiently. Indeed, it allows you to benefit from both a single rate and a single interlocutor for all credits but also to pay only one monthly payment, the date, duration and amount are defined according to your needs and your projects. The credit repayment period is between 12 and 84 months (7 years) whereas the loanable amount can vary between € 3,000 and € 60,000. No fees.

This financial product offers you the opportunity to reduce the total amount of your monthly repayments by extending the repayment period. This is a viable solution against overindebtedness.

 Minimum amount borrowed: € 3,000
 Maximum amount borrowed: € 60,000
 Minimum credit period: 12 months
 Maximum credit duration: 84 months
 Booking fees: Free

Purchase of real estate loans

Purchase of real estate loans

The purchase of real estate credit allows homeowners to consolidate all their credits and to take advantage of the many benefits provided by the groupings of credits: lower monthly payments, contact with a single interlocutor … Your advisor will suggest a fixed or variable rate that will oscillate between 2.20% and 2.80% for your mortgage purchase. This rate is calculated without the borrower insurance, the file and management fees. The repayment term of the credit is 15 years.

 Fixed rate for repurchase of mortgage, 4th quarter 2015
 Duration of the 15-year credit consolidation
 Highest rate: 2.80%
 Lowest rate: 2.20%
 Rate of repurchase of real estate credit calculated except borrower insurance, expenses of file and expenses of management.

Advantages

The credit restructuring proposed by allows French households to control their debt. Many families have opted for this refinancing solution and have emerged from their problematic situation after a few years. They have even been able to envisage new projects thanks to the adaptation of the monthly payments according to their incomes and the personalized follow-up of one and the same advisor.

An online personal space and an My Account Application allows you, among other things, to contact your advisor, monitor the progress of your reimbursement and the debit of the monthly payment.

Loan consolidation simulation

Companies offers you a credit simulation online. This free and personalized service will guide you in your choice of financing so that it is the most adapted to your situation. Targeted simulations will enable you to better prepare your loan consolidation request by indicating in particular the total cost of the operation as well as the cost of the credit at the fixed interest rate.

This tool gives a good overview of your future grouping request. In credit consolidation simulations, credit insurance is rarely included. This insurance, often optional, can be purchased if you feel the need but it may happen that it is imposed in the terms of the contract. You will be able to keep the results obtained and complete a loan consolidation application form if you wish to submit your file to a bank advisor.

Debt Consolidation Archives

If you can no longer pay off your debts, you can go bankrupt. A bankruptcy means that almost all your belongings will be seized and that these will be sold at a bankruptcy auction by the bankruptcy trustee.

When do you go bankrupt?

When do you go bankrupt?

A bankruptcy is pronounced if you can no longer pay your debts. In the event that two or more of your creditors apply to the court for your bankruptcy, there is a very high chance that you will be declared bankrupt. Bankruptcy is not fun and it is therefore advisable to always keep track of whether you will be able to repay a particular loan, and certainly if you have a negative BKR, be cautious about closing a new loan.

You can try to apply for debt consolidation if you can no longer pay your debts.

This is a scheme that can make sure that you get back on top and that you are not declared bankrupt. You will be assigned an administrator who will help you to get rid of your debts. The debt consolidation usually takes 3 years.

Personal bankruptcy

Both individuals and companies can go bankrupt . If you go bankrupt personally, this means that your assets will be sold to meet the claims of the creditors. Even if you have a one-man company or a VOF, you will go bankrupt and the creditors will tell their money on your personal belongings.

Corporate bankruptcy

Corporate bankruptcy

You can also go bankrupt in the business sector, but a distinction is made here between the personal liability or not. At a sole proprietorship, you will be personally liable for the debts. This is not the case, although you can still be held liable if you as a director, if you have poorly managed.

Debts do not disappear after bankruptcy

After the bankruptcy your debts will not disappear. Creditors will still be able to knock you back to get their loan repaid. You may be able to conclude an amicable agreement with your creditors to get rid of your debts.

Borrow money despite bankruptcy

Can you borrow money despite bankruptcy ? Although it is very unwise to conclude new debts after a bankruptcy, especially since there are still debts, there are opportunities that you might still be able to get through a loan. However, this is highly recommended! You can usually close mini credits , or close a loan by giving something in collateral to a pawnshop. Please note that (in the case of a pawnshop) high interest rates are calculated and there is a chance that you will no longer get what you give in collateral if you cannot pay off the loan. A mini loan for small loans wisely, all you gotta pay quickly the loan. However, there is usually no check in both a minilening and a pawnshop.

Loans you no longer manage – the solution is consolidation!

Everyone may have experienced it before, in some cases it is almost impossible to meet their financial obligations. Hardly paying one loan, the next five are waiting to remind you of your former indiscretion with your interest. If you still have enough money and you live without much limitation, nothing really happens, you will repay everything in the foreseeable future. But if it is not so far, there is only one solution – consolidation !

Don’t worry, this solution has already been used by many people with success

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Consolidation is possible for some scarecrow, but why should it be? On the contrary, it is rather a helping hand at a time when other options have more likely failed, and even the possibility of enforcement proceedings against you has appeared . That is, a situation that nobody really wants to experience on their own, because there is a lot to be lost. No need to despair, because within a few days you can have a clearer – and consolidate all loans literally under one roof.

This interesting solution is offered by most domestic banks, it is quite easy and most of the work will be done by bank officials for you. So what is a necessity? In short, you just have to log in and, of course, actively cooperate. If you have a real interest in solving the problem, the problem is already solved. And the principle of consolidation as such is actually quite simple;

In terms of consolidation, you have several different options. Let’s go through a comparison of the  banking houses, which also provide the possibility of consolidating earlier loans. Will you consolidate ? Or, on the contrary, will he get the word from banks?

  Bank A Bank B
Possible range of loans 30 thousand to one million crowns 20 to 700 thousand crowns
Maturity period 6 to 96 months (ie, eight years) 12 to 120 months (ie ten years)
Interest / APR from 4.7 / 4.81% 6.9 / 10.7%
Extra charges No No

 

The winner is quite unambiguous, is even half in the case of bank A – and of course it decides in the first place. Consolidation of loans with bank B is thus rather less favorable, but it may bring more interesting conditions than other alternatives on the market. You’ll find out all this with a very simple comparison that takes just a few minutes of your time…