Sometimes, for different reasons, we find loans that we cannot pay and begin to fall behind. To give us a solution, there is the option of debt refinancing.
Monthly payments you must make exceed 35% of your salary
If the monthly payments you must make exceed 35% of your salary and that has caused you to be late in several installments or in different credits, everything seems to indicate that it is time to request a refinance. This means changing the conditions of your credit so that they meet your new needs.
Which impacts on the term of the credit
Normally, you opt for a reduction of the monthly fee, which impacts on the term of the credit, which will now be longer, but it will be easier for you to pay it monthly. Sometimes they may even give you a lower rate than what you are currently paying.
To know if it is convenient to refinance, you must take into account the new term of the loan, since if it has increased a lot, it would not really represent any savings. Now, if you definitely cannot pay your monthly installments, it will not matter if the term grows or not, because it will mean that you can keep up with your payments, although you will end up paying too much for the credit that originally did not charge you so much interest.
The option has advantages and disadvantages
The option has advantages and disadvantages, you must evaluate them well before making a decision. Another thing that you should evaluate cautiously is the consumer credit you will choose, so first compare all the options and then choose the one you want. To give us a solution, there is the option of debt refinancing.