There are repeated inquiries from people with defaulted payments about loan consolidation. Often the debt has been transferred to a lien and is reduced according to the lien principles. The amount of the drawdown varies but is usually one-third of the debtor’s net salary.

Combining loans almost always requires that the applicant’s credit history is in order and that the claims have not been recovered.

The applicant’s credit history will be reviewed prior to the consolidation loan decision and the entry will result in the loan application being rejected. It is a good idea to apply for a consolidation loan well in advance and not wait too long for loan repayment difficulties.

How to consolidate loans online?

Loan consolidation and tendering can be done easily with a single online application.

Loan consolidation and tendering can be done easily with a single online application.

And since asking for loan offers is by no means binding, you can bid for loans even more than once a year.

However, a default note does not always prevent you from obtaining a consolidation loan. If the applicant has assets that can be used as collateral for the loan, it is possible to negotiate the loan with your own bank. The loan may be secured, for example, by a housing stock, real estate, shares or other assets. In many cases, the guarantee provided by another person is not sufficient to secure a loan, and the bank will require security which can be realized if necessary.

It is also possible to obtain a consolidation loan, even if the applicant has a default payment. However, the company requires that the number of defaults is small and that there are no new entries lately. More detailed information can be found on the website.

What is the use of a consolidating loan?

Consolidation loans are designed for applicants who want to ease their financial management and reduce their loan costs.

Consolidation loans are designed for applicants who want to ease their financial management and reduce their loan costs. If the applicant has accumulated too much debt in relation to solvency, the combination of loans is often no longer helpful. It is therefore advisable to monitor your own finances regularly and, if necessary, to seek outside help, for example, from your own municipal financial advisor.