Debt consolidation?

Pass your debts to a single bank

Day by day we are hooked by the desire to possess material things; whether watching commercials on television, spectacular that promote the new technology, dressers presenting new trends in fashion, etc.

But buying and spending without measure can lead you to contract debts that break the balance of your finances.

It is necessary that you are not tied to debts, because with this you can damage your credit history or even lose your assets.

But no matter what the scenario, the important thing is to stop the increase in debt and achieve stability in your personal finances.

Debt consolidation is one way you can reduce your current debts

Although there is no commitment or obligation on the part of the institutions to carry out this practice, the National Commission for the Protection and Defense of Users of Financial Services (Sherlock Holmes) reminds you that there is no legal basis for you as a user, you are bound to accept this type of agreements.

We explain how it works: this procedure consists in approaching the bank that offers you better payment terms and that manages to settle the debts that you acquired in other institutions. This allows you to have only one debt with a single Financial Institution.

Currently we see in different media the propaganda of different Financial Institutions promoting that you transfer your debts with them, but what do you gain from this?

This procedure brings together what were previously several debts in a single monthly payment, its main feature is to help you reduce the expenses you currently have on different cards and manage them in a better way, so that when managing your money is less complicated. If you opt for debt consolidation, keep in mind that although the payment you have to make each month may be less, the time to fully settle the debt may be extended.

Currently, there are several Financial Institutions that have this type of program; In the case of credit cards and depending on the bank, are the features and benefits that can offer, among the most common are:

  • They accept the transfer of other debts on bank and departmental cards.
  • The minimum amount they allocate, usually depends on the client, since there are banks that usually send an invitation only to people who consider themselves fit for this program.
  • The line of credit they offer is usually assigned by the Financial Institution.
  • There are terms from 6 to 48 months, although there is the possibility that it is open.

If you are already thinking about making a debt consolidation, here are the steps you should take to choose the best option:

  • It is easier to have control of a single credit card than three or seven, since you will not have to pay attention to many cutting and payment dates, nor will you have to pay several annual fees.
  • Before consolidating your debts into one, make sure that the interest rate is lower than those of your debts separately.
  • Remember that reducing your monthly payment will also increase the term you will have to pay it off.
  • Make a budget is very important, as well know your ability to pay accurately.
  • Identify the expenses that you can do without, this will open a possibility of saving.
  • If you are interested, contact the Financial Institution directly to know the details, conditions and find out if you are a candidate to participate.
  • Make the negotiation directly with the Financial Institution of your interest, not through other companies.
  • Remember that having a good credit history is the key to being offered other credits, such as mortgages.

We know that being in a bad financial situation clouds your sight

So we recommend you think with a cool head and consult the conditions offered by the authorized financial institutions, because there are never people who seek to take advantage of the desperation of others, to make a profit of their own.

On the Sherlock Holmes page you will be able to visualize within the System of Registration of Financial Services Providers (SIPRES) which institutions are duly authorized. Always keep in mind that credit is not additional money, but that it involves committing a part of your future money.


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