¿Qué es la consolidación de deudas?
Debt consolidation refers to the act of taking out a new loan to repay other liabilities and consumer debts. Multiple debts are combined into a single, larger debt, such as a loan, typically with more favorable payoff terms-- a lower interest rate, lower monthly payment, or both. Debt consolidation can be utilized as a tool to manage student loan debt, credit card debt, and other liabilities.
Cómo funciona la consolidación de deudas
Debt consolidation is the process of using different forms of financing to repay other debts and liabilities. If you are burdened with different kinds of debt, you can request a loan to consolidate those debts into a single liability and pay them off. Payments are then made on the new debt until it is repaid completely.
Most individuals apply through their bank, credit union, or credit card company for a debt consolidation loan as their first step. It's a good place to start, especially if you have a good relationship and repayment record with your institution. If you're turned down, try checking out private mortgage companies or lenders.
Lenders agree to do this for a number of reasons. Debt consolidation increases the probability of collecting from a borrower. These loans are generally offered by financial institutions such as banks and credit unions, but there are various other specialized debt consolidation service companies that offer these services to the public.
An important point to keep in mind is that debt consolidation loans do not eliminate the original debt. Rather, they just transfer a consumer's loans to a different lender or kind of loan. For actual debt relief or for those who do not get approved for loans, it might be best to consider a debt settlement rather than, or in conjunction with, a debt consolidation loan.
