You realize today that the total of your three separate monthly payments is starting to strain your monthly budget and that the end of the month is becoming difficult.
Rather than dragging out monthly repayment difficulties, it would be time to consider finding a solution: the consolidation of your three loans into a single loan could certainly reduce your new monthly payment. A few words of explanation.
What is loan consolidation?
Loan consolidation aims – in a way – to perform a credit grouping. In the example mentioned above, you have three separate monthly payments to make. By consolidating the three outstanding loan balances, you will only have one loan whose monthly payment will be far less significant.
What are the advantages?
Firstly, from an administrative point of view, you no longer have to think about paying your three premiums each month to different contacts. With loan consolidation, you only have one ongoing loan and one contact.
Secondly, it is quite evident that the total of three separate premiums resulted in much larger repayments than if you only had one ongoing loan, even if the amount of this loan is larger.
When should you proceed with loan consolidation?
As soon as you have more than one ongoing loan, it may become interesting to proceed with a credit grouping. This is a hypothesis that should be considered with your broker.
Obstacle to loan consolidation
It will be difficult to proceed with loan consolidation if you are listed with the National Bank of Belgium, meaning if your file has fallen into litigation.
Solution?
If you own a property, free of charges, it can always be considered to take out a homeowner loan and take a new mortgage registration on your property.