The surrogate is also very popular in the world of loans. Like? With the consolidation of the loans in progress According to the data recently released by the Loans Observatory of Lite Lending, in 2019 the purpose of the “Consolidation ” represented just 3.7% of the total disbursed. A figure that was already growing compared to previous years (2% in 2018, 1.6% in 2017 and 1.4% in 2016) and which in January 2020 recorded a further and significant increase, reaching a market share of 5.2 percent. The requests have also exploded, going from 8% in 2019 to 12% in early 2020. A trend that has been favored (and continues to be) by a cost of money that continues to travel on historically low levels, but also by an Increased competition between providers.

 

Between virtues and vices

loan consolidation

Numbers that if on the one hand show a more virtuous attitude of Italian families, at least today (accusing the weight of the monthly installment, we run for cover by exploiting the long wave of rates at historical lows), on the other they hide a wrong behavior of the past, or the excess of indebtedness: in order not to lose the car of dreams or the much desired holiday, but also simply to pay for health care, financing is requested. In fact, according to a survey by Good Lenders Credit, a start-up born with the aim of improving the quality of life of consumers, in 2019 consumer credit showed a growth of 7.4%, reaching 22 billion USD. And, even more alarming, about 19% of Italians pay late an installment of loans that has come to weigh too much on the family budget, while 3% of not pay at all.

 

More conscience and knowledge

loan consolidation

This is not to say that lending is a tool to be avoided. Rather. Financing certain expenses helps families to live better, but it is necessary to know their limits and become aware of what their financial resources are. In short, before applying for a loan it is necessary to do an analysis of all income and expenses, as well as your own needs and life goals. We need to be forward-looking and not just look at today. And if you realize that a loan to buy the new car or to treat yourself to a dream vacation is going to weigh down the family budget, then it’s better to back off.

 

What to look for in consolidation

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But in the case of consolidation what are the elements to be carefully evaluated? In choosing the new loan, one must certainly look at the Taeg and identify the loan with an annual percentage rate of charge lower than that of the previous loans, or their average. To understand if we will actually save money, we should also take into consideration any plans to extinguish old loans. Finally, the overall amount is also important. If the amount of the loan is significant, you could opt for a liquidity mortgage, which offers lower rates. In this case, however, you will need to access a mortgage on the house and pay the notary.

 

The way of debt relief

credit loans

Since 2015, ie since the so-called debt relief procedure established by law number 3 of 2012 came into force, families have also had a sort of bankruptcy procedure to heal their debt status. To access it, however, certain requirements must be met. Starting from the existence of an over-indebtedness situation, that is an imbalance between the obligations assumed and the assets that can be immediately liquidated and therefore an inability to fulfill one’s obligations. Furthermore, the debt relief procedure can only be accessed through specifically appointed bodies, the so-called crisis settlement bodies, or through qualified professionals, such as a lawyer or accountant.

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