Debt reunification

If the level of your debts has grown to a point where you cannot afford to pay the monthly payment, then you probably need a debt reunification . In this guide we will tell you everything you need to know about this type of financing and how it can safely get you out of trouble.

Many times we acquire debts with different companies and at the end of each month we end up paying too much for all the debt together. To solve this, the figure of debt reunification was created, where you can unite all your financial obligations in a single loan with more favorable conditions for you.

Loans to reunify debts

We want you to make the best decision for your financial well-being, so it is important that you know everything about this modality. This way you will know if it is the most convenient option for your current situation.

Last update: 4 November 2020
Ranking created based on the most frequently granted loans
1 - 48 months
term
$ 50 - $ 7,500
maximum first loan
No
Supports Credit Checker
" APPLY FOR "
6 - 60 months
term
$ 500 - $ 10,000
maximum first loan
Yes
Supports Credit Checker
" APPLY FOR "
6 - 84 months
term
$ 1,000 - $ 50,000
maximum first loan
No
Supports Credit Checker
" APPLY FOR "
6 - 96 months
term
$ 1,000 - $ 50,000
maximum first loan
No
Supports Credit Checker
" APPLY FOR "
1 - 60 months
? Even from 7 days
term
$ 50 - $ 9,000
maximum first loan
Yes
Supports Credit Checker
" APPLY FOR "
3 - 24 months
term
$ 1,000 - $ 5,000
maximum first loan
Yes
Supports Credit Checker
" APPLY FOR "
2 - 36 months
term
$ 100 - $ 5,000
maximum first loan
No
Supports Credit Checker
" APPLY FOR "
2 - 42 months
term
$ 100 - $ 10,000
maximum first loan
Yes
Supports Credit Checker
" APPLY FOR "

What is debt reunification?

Debt reunification is a financing method that includes all your current debts and summarizes them in one. In this way, you ask for a different loan to pay your delinquent debts, where you will have to pay a single installment with a single interest rate , thus reducing the amount of monthly payments you must make.

In what situations is it convenient to reunify a debt?

The first scenario where it is advisable to consider a debt reunification is when the payment of the installment is approaching each month and you find it difficult to pay your loans . If you are in a very tight economic situation, you feel that all your income disappears with the payment of your debts and you need a little space to save, then the reunification of the total amount owed may be a good alternative for you.

It will be a convenient financial method as long as the new and only monthly fee assigned is less than the sum of all your payments each month. Only in this way will you be able to benefit from reunification and gradually recover your solvency capacity through savings.

It is important that you plan your expenses well to know in advance if you can pay or not, since, if you are aware of your possibility of default in advance, the process will be much more advantageous for you.

Stop paying? Never!

If you miss the date of the monthly payment of your installment, the situation will get a little more complicated, since you will have to pay interest for late payment and the amount of the total amount owed at the time of reunification will be higher. In this way, time plays a very important role in making it convenient to reunify a debt.

How does the grouping of credits and loans work?

Basically, it is about asking for a new loan to pay different debts through a single procedure . Through this type of financing, the repayment terms are extended to achieve that the monthly payment to be paid is lower.

Tips for reunifying debts

In the short term, it represents a great relief and the fact that paying off your debt will not consume most of your income . However, in the long term it means that it will take longer to get out of your debt and you may have paid more money in interest when you finish the loan.

What types of debts can be reunified?

The main objective of a debt reunification is to avoid falling into greater debt by unifying all the debts in a single installment to be paid with more favorable conditions. You can unify different types of debts such as those from:

  • Bank loans.
  • Personal loan.
  • Mortgage loan.
  • Consumer financing.
  • Credit cards.
  • Loans to buy a car.

What is the maximum amount that can be reunified?

You should know that there is no maximum limit established when requesting a debt reunification. The maximum amount that we can access through this process will depend on the total amount owed to reunify and our solvency capacity . However, if it is a debt reunification that does not involve a mortgage, the most common thing is that the lending companies can finance up to 40,000 us dollars.

Status of your Previous Debt in a Debt Reunification

In a reunification, are debts canceled? Technically, yes, but it is you who should do it. That is, when you reunify your debts, you receive the total amount owed. The idea is that with this money you amortize each and every one of your individual obligations, thus closing each procedure to end up with a single debt that is the payment of reunification.

In this way, we can say that your previous total amount owed is canceled, but this task corresponds to the individual and not to the company that offers the reunification. It is very important that, at the time of requesting your debt reunification, you declare if any of your loans penalizes you or charges you for paying it off early. If you only declare the loan amount, then you will have to pay these extra expenses on your own.

Reunification of Debt with Mortgage

It is possible that in addition to your debts, you are also paying a mortgage and want to reunify the whole. In these cases you should know that there are two options; apply for a new credit that covers the entire debt, or extend your mortgage to cover additional debts and negotiate new conditions with the lender.

If you have an ongoing mortgage, you need to cancel all your previous debts to apply for a new mortgage that encompasses them. In this way, the financial entities or lenders instead of offering you a single loan to reunify the debts, they propose to cancel the previous mortgage and negotiate a different mortgage. The objective is that you obtain a new loan with better conditions and terms of up to 40 years , which allows you to soften your current financial situation and have a saving capacity.

Requirements for a Debt Reunification With Mortgage

If you are going to reunify your debts with a mortgage, these are the requirements that you must meet:

  • Be of legal age and holder of a bank account.
  • Be the owner of a mortgageable property or have a mortgage loan so that the deeds of the house serve as collateral or guarantee in case of non-payment.
  • The total sum of your individual debts cannot exceed 80% of the value of the mortgaged property . If you exceed this amount, you can only reunify those debts that remain within the limit.
  • You must have all the payments of the loans that you want to reunify up to date , since, unlike private lenders, banks are usually more demanding in this regard and do not admit defaults.
  • Certificate of regular stable income , which does not necessarily have to be a payroll.
  • If you don't meet a requirement that demonstrates your ability to repay your debt, you probably need a guarantor as well.

Costs Associated with a Debt Reunification with a Mortgage

Reuniting your debts through your current mortgage entails a series of administrative expenses, among which we can highlight:

  • Appraisal of the mortgaged property: you need to process an official approved appraisal and the cost of this document will depend on the size of the property and the appraisal company you go to.
  • Commission for opening a new mortgage : when entering into a new mortgage process, you will have to assume this administrative expense that includes the notary, taxes and the property registry.
  • Expenses for early cancellation of the previous mortgage: when starting another mortgage with different conditions, you will have to assume the administrative expenses for having canceled the previous one. However, this cost does not reach 1% and it decreases, depending on the number of years you had with the old mortgage.
  • Management fees : if you go to an intermediary to manage this procedure, you will have to pay fees.

Reunification of Debt without Mortgage

It is necessary to clarify that reunifying several debts is not an exclusive financing for the home mortgage. Sometimes we acquire small debts that accumulate so it is possible that you can reunify your debts without a home and use that money to pay other types of obligations such as:

  • Vehicle Purchase.
  • Credit card payment.
  • Long-term personal loans.
  • Deferred purchase payments.

Companies like Kreditiweb, allow you to reunify your debts without a mortgage and with a financing of 50,000 us dollars.

How much does it cost to reunify several debts without a Mortgage?

Reunify debts

You should know that the debt reunification process involves certain expenses that you should know before requesting it. It is important that you include them in your study to know if it is the best financing option for you.

Also, keep in mind that you can fall into a spiral of debt if you don't really take into account all the expenses related to this process. It is important that you be honest about your financial situation and the actions that led you to accumulate a debt that is now impossible to pay.

Analyzing your consumption habits and your job stability, you will be able to determine if reunifying several debts through a new loan will be a safe option for you.

Interest in Debt Reunification

Loans to reunify several debts into one are usually more favorable than handling all the debts separately. However, keep in mind that the Annual Equivalent Rate (APR) may be higher because it will include administrative expenses and commissions related to this process.

Some companies may offer to lower the APR so that you pay less interest, or on the contrary, more favorable repayment terms with lower fees but with a higher interest rate (APR).

Commissions in Debt Reunification

The main commissions related to this procedure are:

  • Commission for opening

If you acquire a debt reunification with any private entity, you will have to pay an administrative commission for the opening of your file and the new loan to reunify that you will pay. Normally, this commission is between 1% and 3% of the amount to be paid.

  • Commission for Early Amortization

Depending on the months remaining to the end of the repayment period, you may have to pay a commission for paying off your debt early. If your term has less than 12 months remaining, the percentage of this commission varies from 0.5% to 1%.

Debt Reunification with Credit Checker

If you find yourself in a delinquent file like Credit Checker , don't worry. While it is true that some companies do not offer this financing to people who appear in this registry, others such as MoneyMas and Solicita24 offer debt reunification with Credit Checker for a maximum amount of 5000 us dollars.

If you need a larger limit, Gedescoche or Finzmo may be a good option, since they accept debt reunification with Credit Checker and they finance you up to 10,000 us dollars. You can also resort to a broker like Doctor Dinero where just by filling out a form you can see different offers for debt reunification.

Reunification of Debts Without Payroll

It is possible to request a debt reunification, even if we do not have a payroll. Nowadays, many people have other forms of income that are not related to having a payroll domiciled to their bank account, such as pensioners, freelancers or students.

However, you must demonstrate some regular and stable income such as the collection of a benefit, scholarship, etc. Even so, lenders not only take this into account when approving or denying an application, so it is important that you keep the rest of the requirements in order before requesting a debt reunification.

Reunification of Debts Without Guarantee

Although at first it seems that grouping debts without having a guarantor is not a viable option, you should know that it is possible. The figure of a guarantor represents a guarantee in case you cannot pay your debt.

However, if you already have a stable and regular income, you will not need to look for an endorsement, since the lenders want to have proof that you will have an inflow of money to meet your monthly payments. If, in addition to having a fixed income, you meet the rest of the requirements, you will have no problem requesting a debt reunification.

Advantages of grouping debts

Advantages of reunifying debts

Before entering a debt reunification process, you should study the conditions that they offer you and evaluate if this loan is more favorable than paying all your debts separately . Reuniting your debts is advantageous only if you really need it and your current installments are impossible to pay.

Among the advantages of this procedure, we can highlight:

  • If you have a lot of accumulated debts and you feel burdened by all the money you have to pay each month, by grouping debts your monthly payment decreases.
  • You can find offers with a lower APR .
  • They offer you longer return times.
  • Possibility of facing other expenses if your monthly payment does not consume most of your income.
  • You will stop paying a lot of separate interest to each company, to pay a single monthly payment that is governed by a single interest rate.

How to unify my debts?

To reunify your debts, you must follow these steps:

  • Do a study of all your financial obligations. Collect all the credits and deferred payments that you have active so far.
  • Gather information about your debts, including the total amount of money left to pay, the repayment term that remains for each one, and the interest that you have left to pay.
  • You should also investigate if any of your debts include early cancellation costs and include this amount in your study.

Once you have this information, you can request the reunification of your debt from your bank. However, you should consider that, if you already had a debt with your bank, it is not very likely that they want to grant you a different loan. If you are a good customer, you may be granted a debt refinancing.

Additionally, these processes include paperwork, red tape, and demanding requirements. However, you can request the reunification of your debt online through private lenders such as Younited Credit that offers up to 40,000 us dollars to return in 7 years and do not even request an endorsement.

To request a reunification of debts in these entities, you must fill out a form with details of your financial situation and once they accept your request, you will have the money almost immediately in your account. In this way, you will end up paying a one-time fee for your debt.

Requirements for the reunification of debts

Normally, the requirements for this type of financing are usually more demanding than for an online microloan . Among the most common, we can mention:

  • Being over 18 years.
  • Reside in the United States.
  • Have a valid DNI or NIE.
  • Have a bank account in United States.
  • Demonstrate monthly income such as benefits, scholarships, retirement, etc., to meet the fees.
  • Have active mobile and email to receive information.

These requirements may vary according to each company, for example, in Gedescoche, you can request loans without payroll 10,000 us dollars, as well as in companies such as MonedoNow, MoneyMas or Solicita24, where you can request a loan of up to 5000 us dollars.

Alternative to pay debts

Debt reunification is an alternative to cover your debts with the help of external financing. However, there are also other options that you can hire; how to use the services of a debt repairer . To mention an example: Repagalia.

Repagalia is a debt advisor and negotiator who acts as an intermediary between the debtor and the creditor . Through its service you can get a significant discount on your current debts. Unlike the reunification of debts where you request external financing, through a debt repairer you cover the balance with your own resources, and she takes care of all the management to clean your credit history . This way you can reintegrate back into the financial system.

To learn more about Repagalia , read an explicit review of his services as a financial advisor and negotiator.

In addition to Repagalia, another credit repairman that is worth considering is Solve your debt . This entity is in charge of renegotiating your debts with their respective creditors, getting discounts of up to 50% so that you can settle them by paying less.

By hiring their services, you get tailored plans that allow you to pay with your own resources, instead of requesting a loan and continuing to borrow. In addition, you receive advice from beginning to end and manage to remove your data from the delinquency files , once your debts are paid.

FAQ - Frequently Asked Questions

We made a compilation of the most common questions from users regarding the reunification of debts:

What about the old debt?

With the money you receive from the new loan, you will have to cancel it or repay it in full by yourself. The entity will not be responsible for this process.

Where can I reunify my debts?

You can do it at your bank, where the requirements will be more demanding, or at a reliable lender.

When to reunify debts?

When the monthly payments you currently pay are impossible to meet or the conditions of the new loan allow you to save on interest.

Is it convenient to reunify my debts?

Depending on your current needs, it will be convenient if the APR you will pay is lower, if the repayment period is longer or if the monthly fee is less.

Can I reunify my debt without payroll?

Yes, in companies such as Gedescoche, MonedoNow, MoneyMas and Solicita24 they will not require a payroll.

Can I reunify my debt if I am in Credit Checker?

Although for some entities it may be an obstacle, in companies such as MoneyMas, Solicita24, Gedescoche or Finzmo you can reunify your debts while being a Credit Checker.

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