Basically, the reunification of debts is a refinancing and consists in grouping all credits (personal, mortgage or card) in a new mortgage loan for a longer term, so that reduces the monthly fee to pay. The reunification of debts appears as a solution for those who have multiple loans and credits, by offering a reduction in the monthly quota of up to 50%, but the final debt increases due to the numerous expenses and commissions generated by the operation. Requirements to ensure that a Bank approved a reunification of debts several conditions must be met: the client must have a dwelling, with or without loads, to be used as a guarantee of the new mortgage loan. The total capital of the new mortgage may not exceed 80% of the appraised value of the floor (the financial institution shall request an up-to-date appraisal). The monthly fee of the new mortgage may not exceed 35% of net monthly income of the family unit. Processing to manage one reunification of debts we have two options: via an institution of reunification of debts: these companies perform all actions on behalf of the interested party, are negotiating with different financial institutions and proposed operation, which usually consist of cancel all credits and hire a new mortgage for higher capital and lead, which shall cover the outstanding capital more commissions and expenses as the reunification of debts assumed. The intermediary charges their brokerage a Commission of between 3% and 7% of the amount to refinance.
These companies, like loans faster, serve more hard-pressed customers, in exchange for high commissions. Directly with financial institutions: in not very severe cases, the consumer can manage himself the reunification of debt negotiating with your bank or other financial institutions, and can thus save the intermediary Commission. Advantages we see the main advantages of the reunification of debts: after a reunification of debts the monthly fee to pay is lower. The reunification of debts allows access to the best offers on the market, not limited to a single bank. It reduces the effective interest rate. You can access the reunification of debts although he is included in lists of delinquency. Quickly. Confidentiality.
Disadvantages the reunification of debts has many drawbacks: increase the repayment term, so it will be paid for longer. Generates numerous expenses and commissions (cancellation of the initial loans, formalization of the new mortgage, the intermediary Commission) for what debts are increased. Reunification of debts entities aren’t banks nor financial, so it is not subject to the control of the Bank of Spain and lack a legal framework that regulates them. This motivates that often act with lack of transparency and implement abusive fees, resulting in its confusing and even misleading services to consumers. It promotes family over-indebtedness by providing a false impression of economic relief.