There are many families who, month after month, not only have to pay the mortgage, but also the car loan or credit cards. With the reunification of debts, that is, putting together each and every one of them, we can reduce the monthly payment by half. However, there are also possible drawbacks.
The reunification of debts is nothing else than to unite the mortgage debt of a person with all his other debts. In this way, a reputable debt consolidation programs are created, which encompasses all debts.
Requirements to request a reunification of debts
The essential requirement for the granting of a reunification of debts is that one of the pending debts is the mortgage.
Regarding the documentation, you must present ID, work contract, deed of the house, the last three payroll, the last cleared receipts of the ending credits, the last declaration of Income or IRPF and the judicial orders or the letters of lawyers, if there has been or there is an embargo.
Advantages and disadvantages of debt reunification
In order to know if it is convenient to request the reunification of debts, its advantages and disadvantages must be kept in mind.
An advantage is that being a mortgage loan, the interest will be lower than most of the previous debts. However, the repayment term will be much longer. This will drastically reduce the monthly fee. In this way, as a debtor, there will be more liquid money throughout the month and relief will be felt.
Another advantage is that you can choose the duration of the reunification of debts through a mortgage loan or one that has no mortgage guarantee. Thus, the monthly fee will be reduced without having to face many interests.
Among the disadvantages, it is necessary to keep in mind that, by lengthening the duration of the loan, we will end up paying a greater amount of interest. In addition, you will have to face more commissions, while the final debt to be paid will be much greater than the initial debt.
How much does the reunification of debts cost?
It is a process that has a cost since it includes commissions, professional fees, and taxes.
However, you can request the inclusion of the cost of all operations in the new mortgage. This will avoid disbursing a large amount of money in an instant manner.
In short, as we have seen, the reunification of debts is a very useful service to get out of an economic hurry that is temporary, but it should only be requested if it is a true emergency.