Is it possible to refinance debt?

If there is something that usually takes the sleep of many people is the doubt. In addition to restricting market credit possibilities, they unbalance any financial planning. In order to solve this problem, many people resort to debt refinancing.

If you don’t know how this process works, keep reading this post and learn more about it!


Understand What Debt Refinancing

Debt Refinancing

Debt refinancing is a type of credit for those who have financial backlogs. It is a great opportunity to settle debts and remove the name of the credit protection agencies.

The big advantage is the ability to negotiate more affordable values ​​for settlement, especially if the intention is to make the payment in sight. If this is your case, do not doubt it: ask for a good discount for the financial institution.

Those who prefer to negotiate in installments will have their names removed from debtor records from the first payment.


Know which debts can be refinanced

Know which debts can be refinanced

Virtually any type of debt can be refinanced. You can apply for this facility both for consumer debts incurred from making a purchase and for credit if you have trouble repaying with a loan. , financing or invoice from the card.

Individuals and companies can also search for tax debt negotiation. Anyone who is pending with the IRS or Social Security can join the tax debt settlement program announced by the federal government at the end of 2016. Who owes the states or Municipalities need to look for incentives offered by these agencies to check for refinancing.


Learn how to apply for refinancing

Learn how to apply for refinancing

To make this request is very simple: just contact the creditor institution and check the conditions offered for the debt to be settled. Often lenders themselves often seek out debtors in search of a renegotiation, or outsource this activity to another company. This is also a great opportunity to make a deal.

In the case of financial banks, some already make this kind of online trading available, making it easier for those who do not have the time to attend an agency in person.


See some tips for applying for debt refinancing

applying debt refinancing

Although this is a great way to regularize the financial situation, there are some precautions that should be observed before applying for debt refinancing. The main one is to make sure that you can honor the new commitment, not to turn that opportunity into another headache.

If you decide to pay your debt in installments, the recommendation is that the amount of the installments should not exceed 30% of your income. This care is critical to reducing the risk of getting involved in other debt because of refinancing.

With recent declines in interest rates, the present time is good for those who want to exchange their debt for a cheaper one. To do this, look for financial institutions that have already adjusted their rates to the new indicators in order to get more affordable financing and pay off once and for all their financial backlogs.

Now that you know how debt refinancing works, it’s easy to find out if it’s worth it. If you liked this post, follow our social media pages (Facebook, wTwitter and LinkedIn) and stay on top of our next tips!