Debt consolidation or disposal: what solutions for bad payers?
Is the consolidation of debts for bad payers a real possibility to get back on track with the repayment of the loans? Are there any limitations? We analyze these aspects and try to answer the questions exhaustively.
When it is possible?
We have to make a first distinction: protesters are much more limited in access to credit than bad payers. When you are registered in the appropriate lists of protested subjects an official procedure is dealt with by the authorities in charge, which also leads to a series of inhibitions provided for by law ( for example the impossibility of using checks ).
The bad payers are such for a ‘simple’ registration in the black lists of the banks and the financial companies which in turn are based on specific databases including the Crif note. These are people who, due to problems, lack of regularity or inability to repay all the loan installments or a mortgage, are ‘reported’ because they are not reliable. This distinction highlights an important aspect: if you are a bad payer you can return to a normal situation more easily than the protesters.
If you have the opportunity to be removed from the list of bad payers, before asking for a debt consolidation, you should proceed with this path, and only then rearrange your loans by combining them into a single loan. If instead the situation is not yet close to a solution then you might encounter some limitations.
What are the possible solutions?
Now let’s see what alternatives the market offers and how to overcome some typical debt consolidation limits.
The least complicated way to go is the sale of the fifth. It should be noted, however, that this is not a true debt consolidation loan, but simply a loan that can also be used for this purpose. Obviously it is not accessible to all workers, as the self-employed are excluded. In the case of pensioners, there are limitations:
- at the age;
- to the transferable quota;
- to the type of pension received (disability, disability and social benefits, for example).
With the assignment of the fifth of the salary or pension it will be the applicant himself who will have to use the sum obtained, or at least a part of it, to extinguish the existing loans.
Consolidation loan proper
In the ‘real’ consolidation loan, the lending bank (Unicredit, Findomestic, etc.) will take care of the full repayment of the loans to be consolidated once the loan has been disbursed. In the specific case of a debt consolidation request, bad payers need to pay much more attention to the finance company or bank they are targeting. First of all, you need to find out if the chosen bank has tolerance with respect to the status of a bad payer. In the case of an affirmative answer, it is necessary to ascertain the tolerance level used.
This information is not difficult to find online, but only by contacting the personnel responsible for providing the loans who are familiar with the credit scoring and evaluation policies adopted. Some banks and financial institutions may be more tolerant of bad payers. However, the number of reports can cause this tolerance to be lost. For example, a bank can tolerate up to 3 reports, but from the fourth on it will no longer accept to finance the same bad payer. Therefore it is important not to accumulate too many delays, especially on the same financing contract.
If on the one hand these observations on debt consolidation limit the freedom of choice, on the other hand they do not preclude the possibility of access to self-employed workers and employees who are not ‘often’ financed with a classic salary assignment (such as employees of a cooperative that may encounter serious difficulties).
How to proceed with debt consolidation?
When you have numerous loans in progress but do not want to merge them all into a single loan, it is preferable to ‘consolidate’ especially those with whom you already have repayment difficulties. This solution allows you to immediately regularize your debt situation and get out as soon as possible from the list of bad payers.
Unfortunately it is not possible to obtain general information on a widespread but also ‘particular’ condition such as that of bad payers. If you have difficulty in repaying a loan, the first thing to do is talk to your bank that, knowing the vicissitudes that led to the deterioration of the credit reputation, may be more willing to grant a debt consolidation loan than a bank ‘ alien ‘.
It is however a good practice to request various estimates also referring to salary-backed loans, so as to evaluate the economic conditions of the proposed alternatives.