Having several monthly installments simultaneously can be a challenge for budget management. When there are different credits in force, finding an efficient solution can make a difference in financial balance. Among the available options, there is a solution with clear advantages for those who want to simplify their financial life.
What is the consolidated credit
Consolidated credit allows you to gather multiple credits in one, with a single monthly installment and usually a lower value than the total of previous installments. This solution is applied to personal credits, credit cards and, in some cases, to housing credit.
Consolidation may represent a significant reduction in the effort rate. This is a way to rearrange the budget, paying less a month, without multiplicity of charges and more control over payments.
What should evaluate before consolidating
Before advancing with this solution, it is essential to compare deadlines, interest rates (TAN and TAEG), commissions and other costs associated with existing credits. Only then can you notice the real impact of consolidation.
A lower installment may imply a longer period and, therefore, it is important to calculate the total amount you will pay until the end of the contract, as well as to verify that it pays off in your specific case.
Benefits at the levels and commissions
Many credits, especially those hired in periods of higher financial instability, have high rates. When consolidating, it is possible to obtain a lower rate, reflecting on a lower monthly installment.
In addition, with only one credit in force, the number of committees to be paid is reduced. Instead of several committees per credit, there is only one, which translates into a monthly savings.
REDUCTION OF SECURITY
When having multiple credits, it is also common to accumulate different insurance. With the consolidated credit, it is obliged to keep insurance associated with a single contract, such as life insurance.
Even if it keeps some additional insurance, it will always be less than the previous number. This reduces the monthly amount spent on this type of charges.
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Avoid new debt
One of the advantages of consolidated credit is to release monthly budget. However, this clearance should not be used to contract new credits, otherwise it will return to the starting point.
To take advantage of consolidation, it is important to maintain a budget discipline and use monthly savings for amortization or constitution of a financial reserve.
To resort
There are several market institutions that offer consolidated credit solutions. It is advisable to choose certified entities that have clear and at no adhesion simulations.
There are also specialized consultants who help find the most appropriate proposal to the customer profile, without having to pay for the analysis of their situation.
Practical Savings Example
Real cases show how this solution can relieve the budget. Families with monthly installments of more than a thousand euros managed, through consolidation, to reduce them to values close to 600 euros, exemplifies the.
In these cases, even with deadlines similar to previous contracts, the monthly difference allowed to recover financial stability and create margins for new economic decisions.
You can even compensate for longer deadlines
Although a longer period can imply the payment of more interest, this extension allows immediate relief in the family budget. It is an exchange between more affordable monthly amount and a higher total cost, which can be compensated with later amortization.
The decision to consolidate must be made based on a rigorous calculation. With a detailed analysis, it is possible to see if this solution is advantageous for each specific case.
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