Debt consolidation for bad payers is a form of financing that allows you to merge various loans and repay them to a single creditor. Debt consolidation is a very useful operation if a consumer is in difficulty in returning monthly installments of more loans obtained in the same period.
The most common case derives from an excessive use of consumer credit, that is, all those forms of installment financing for the purchase of goods such as household appliances or vehicles. An inattentive consumer could find himself in the difficult situation of having to repay several installments every month, with related interest, which, adding up, put him in great financial difficulty. If the debtor is considered a bad payer, the situation is even worse.
Through consolidation, a financial agency extinguishes all debts that are subject to restructuring on behalf of the consumer and then assumes the obligation to request repayment. The consumer thus deals with a single creditor, compared to a series of different subjects, which required different deadlines and interests. With the new creditor it is possible to negotiate a new amortization plan, often at a fixed rate, which could also include an extension of the maturity, with a relative decrease in monthly installments. In some cases, when the debtor’s financial situation is good enough, additional financing could also be obtained from the new creditor, to be repaid together with the previous ones.
However, this is not the typical situation of bad payers
These consumers are considered unreliable by the banks, because they are reported to the Central Financial Risks , because they are late in repaying some loan or because they are insolvent. It is difficult for these people to get a loan and consolidate their debts. The bank to which we will address will first assess the degree of risk: better to be late than some installments that completely insolvent, then. The fundamental aspect however is that of being able to show some guarantee : a house on which perhaps to put a mortgage or a fixed income on which to perform the assignment of the fifth (20% of the salary or pension will be destined every month to the payment of the installments) .
To make it easier to access debt consolidation for bad payers, it is therefore necessary to be permanent employees, or even temporary workers, working for at least 4 months, or to be retired: this status guarantees the bank a fixed income .