Debt refinancing is an option for anyone who is looking to settle the bills, recover money and gain momentum in the financial schedule. More than that, this modality of credit is attractive precisely because of the lower interest rates in the market if we compare with other options. Are you planning on doing this? So here are some important things you can do to make a successful business.
The two forms of refinancing of debts
Today, we can say that there are two ways to do a debt refinance. To make it easier to understand, let’s explain two scenarios where that credit option fits in, which helps a lot of people clean the name with creditors.
1. Refinancing of outstanding debts
Debt refinancing is quite common in cases of people with open installments, usually by car or property. It is an option that the person has the dirty name and wants to solve. Not all banks give this possibility, it also depends on the contract and other factors.
2. Refinancing of assets to obtain credit
Another option is to refinance a good to get a credit. This modality is very common for people who have already disposed of their assets and are looking for extra money to make a retirement, make an investment or simply reserve for contingencies in the future.
After all, what is debt refinancing?
Refinancing debts is nothing more than getting a loan using as collateral a valuable asset, usually automobile or real estate. It is also a viable solution for those with open debt, such as restarting accounts and getting a credit value. In practice, it is a very interesting option!
Direct debt refinancing with the creditor
Doing direct debt refinancing with the lender can be an interesting way out to solve the problem, especially if it is an outstanding amount related to the good like car or home financing. Banks usually work with this type of trading and the advantage to the customer is determined from the details such as interest and parcel values.
Starting a payroll can help you reorganize your accounts, change jobs, and stabilize. In practice, you sell your loan and make a new one!
Debts that can be refinanced
Refinancing debts can be done in various situations. Ideally, you should always look for the creditor to have more information about the operation of this modality with them, since from bank to bank there may be variations. However, we can say that refinancing is available in cases of loans, financing and even in credit card bills.
How to apply for debt refinancing?
Requesting to refinance is simple. The first step is to seek the creditor and give the conditions for this modality. If your case is debt, make clear your intention to discharge, this will help you to make a good deal.
Some banks and creditors pass information of this type over the telephone, via the Customer Service Center. So, search the site or contact us before going to the bank.
Tips for Making a Good Refinance of Debts
All care is little when we talk about financial commitments. So, before you close a refinancing agreement, consider the following questions:
Consider your income: Do not do business if you can not afford it. Consider putting the installment amount along with other installments that should be restricted to 30% of your total income. More than that is a big risk and non-payment can bring a huge headache in the future.
Interest Rates: Always check the interest rates and look for institutions with the lowest rates, which allows a successful negotiation with more affordable values. Therefore, research the banks and the conditions and do not close deals on the first institution, except if it is a refinancing of debts on account of outstanding debts.
Faced with this information, it is up to you to evaluate whether you are compensated for refinancing to pay off debts and remember that anyone who has the name denied in the SPC or Serasa finds it difficult to obtain the credit later. And, having won the credit, it is time to organize financially to avoid perrengues.