In the event that you have several active loans or accumulated debts, a good option to resolve the situation may be the reunification of debts.
In this article, we provide you with the following information:
- Debt reunification, what is it?
- When it is a good idea to make use of this solution and how to reunify debts profitably.
- Advantages of debt reunification
- Different reunifications of debts such as without housing, with credit institutions, with credit institutions without property, without collateral, without mortgage and without collateral. You can also use a simulator!
- … and much more!
What is a debt reunification?
The reunification of debts consists of an operation through which a person decides to group all or part of their debts and obligations into a single loan. The advantages of reunifying are saving money every month by paying less interest, recovering the overview of your finances and the peace of mind of paying a single fee per month.
More characteristics of debt reunification
By unifying all your loans, credits and mortgages into a single debt, you can manage to pay much less than what you paid before for all separate installments.
In other words, a borrower reunites the loans and credits open in his name into one and, with it, enjoys the convenience of having a single repayment fee to pay instead of several.
There are several types of debt reunification since you can request one despite being homeless, without a mortgage and without collateral and also with credit institutions.
The concept is very simple: accumulate all your debts in one and you will save money.
The most common way to carry out this process of debt reunification is usually a grouping of your existing loans, with the request for a new loan with lower interest.
In this way, you can return the outstanding installments of the rest of your loans or obligations, but at lower interests, so you will be able to save money on your monthly payments.
How can Bankater help me with my homeless debt reunification?
Bankater is an online loan and credit comparator whose main objective is to bring the financial market closer to its users.
Our mission is to make the credit market something simple and transparent, in order to facilitate online comparison so that you can find the most profitable debt reunification for your situation, even without housing, without a mortgage and without collateral and with credit institutions. We also offer products such as online loans on the spot without requirements.
That is why we present you with an updated list of the best personal loans to reunify debts with all the information we consider necessary for the comparison task: conditions, requirements, interests and advantages of each loan.
But not only that: we also believe it is necessary to reflect the disadvantages of each financial product, and if it entails additional expenses or commissions, so that our users can avoid unpleasant surprises.
Our mission is to help our users, so our service is completely free and not binding.
You can read more about this in how our service works.
Frequently asked questions about debt reunification
What is debt reunification?
Debt reunification is the unification of all your debts into one to reduce the monthly fee.
What is the purpose of reunifying my debts?
The purpose of this process is to pay less interest. You would pay interest on a single debt instead of four different debts.
Do I have the right to retract if I have agreed to a debt reunification?
You have the right and it is possible as long as it is no longer than 14 days after signing the contract.
How to make a debt reunification?
Making the reunification of debts can be an unknown process, so Bankater wants to facilitate the process. You have all the information in the next section.
5 steps to reunify your debts online
Increasingly, financial institutions are aware of the evolution that the Spanish credit market has experienced.
That is why many of them offer the possibility of making a request for online debt reunification, through a few simple steps:
- Compare the options
Find an entity that interests you thanks to the list that Bankater provides you
- Fill out a form
So you can make your reunification request online.
- Study the proposal
The entity sends you by e-mail a proposal adapted to your situation.
- Send the necessary data
If you accept the conditions, you must send the required documentation to start the reunification process.
- The final contract
Once the application is processed, you will receive the final contract and the entity will handle your debt reunification.
This is how debt reunification works
Debt reunification is an interesting possibility to get fast money that covers all outstanding debts.
This financial operation unifies all your loans and credits into a single obligation, thus achieving more profitable interests.
The usual process is basically to apply for a new flexible loan of a sufficient amount that covers the debts of all small active loans, and thus repay all the money of the different loans.
In this way, through a reunification of debts you end up paying a single fee lower than the total sum of all your other debts, being able to choose how much to pay per month and for how long.
This makes the repayment of your debts a very comfortable process, since you should not worry about the return of different installments on different dates of the month.
In addition, reunification allows you to return your debt in a term that suits your specific needs, since these are usually very flexible loans.
How to reunify debts?
Although the process of debt reunification is becoming more and more known (see here), the answer to how to reunify debts in a simple way remains unknown to many.
If you want to reunify debts, you have two main options: the first is to hire a company dedicated to this task, which will conduct negotiations with the bank and get a reunification agreement for you.
The second option is to contract on your own a large amount loan that allows you to pay the rest of the loans, and then pay a single installment.
There are several online financial institutions that offer debt reunification loans through the internet.
With the simple fact of filling out an online form, you can start your debt reunification process and start saving money.
If you are interested in contracting a debt reunification, there are lenders that offer to perform the service for you, so they will be in charge of negotiating with the banking entities so that you get the best possible conditions.
Thus, the entities with which you contract your reunification organize the cancellation of your existing loans and credits in addition to taking care of all the necessary paperwork related to the financial operation.
In addition, there are different ways to reunify debts, thus being able to choose the option that best suits your situation.
The different possibilities include, for example, the reunification of debts with mortgage guarantee, reunification of debts without housing, reunification of debts without collateral, reunification of debts with personal guarantee…
Reasons to opt for debt reunification
With the process of reunification of your debts the extension of the duration of your loan or the opening of a new one takes place, but having a single lower payment than the one you paid before for all your separate debts.
Grouping your loans into one can save you a lot in your monthly repayment installments. The result is something as simple as paying less per month, but for more months.
The most obvious advantage of debt reunification is the large reduction in monthly payments.
In addition, the fact that the company with which you contract the reunification of debts takes care of all the paperwork and negotiation, is also a clear advantage to take into account.
The main reason to hire a debt reunification is if your economic situation has changed recently and you can no longer face the payment of a fee that you had previously hired.
A very common example is people who contracted a € 500 mortgage per month at a time when they could afford it, but after losing their job, they can only pay € 250 per month, still having 7 years of mortgage.
In this specific case, a reunification of debts would allow them to pay less per month, but for more months.
Is it safe to make a debt reunification?
Although many users have doubts about the security of making a debt reunification, we must take into account that this financial solution is regulated to guarantee the security and protection of the user (read new regulations here).
Therefore, taking into account the regulations, making a debt reunification is as safe as applying for a personal loan or asking for a mortgage. It is simply a different financial product that tries to meet the needs of users with several outstanding debts at the same time.
Before contracting a reunification of debts, in the same way as with the rest of financial products, we must ensure that it is an entity regulated by the Bank of Spain and that complies with the regulations.
In case you have a problem with a debt reunification company, there are three possibilities to file a claim:
- Through a consumer association, such as the OCU or FACUA
- The General Directorate of Consumption of your autonomous community
- The Court of Justice
Who benefits a debt reunification?
Are you a consumer tired of the pressure of your debts and overwhelmed by dealing with all those monthly payments?
If you are tired of having to remember the different collection dates of your debts, maybe this product is a solution that you should consider.
To decide if it is profitable to reunify your debts, it is recommended to use a debt reunification simulator to see how your monthly fee will look if you opt for reunification.
Performing a simulation of the reunification of your debts allows you to know if this option is suitable for your situation.
Most online financial institutions have a debt reunification simulator on their website, which is very simple to use and does not involve any commitment.
The best option is to use the debt reunification simulator offered by the entity in which you are interested, so you can know firsthand what the monthly fee to pay for your specific case would be.
In case the monthly reunification fee is less than the sum of all your joint debts, reunification can be the perfect solution for you and your financial situation.
In addition, performing a debt reunification simulation does not entail any commitment to the entity, so you can use various debt reunification simulators on their respective websites and later, compare the results to opt for the reunification that suits you best.
A debt reunification is a financial solution that may not adapt to everyone’s situation. Therefore, it is necessary that it be taken with caution and that users are aware of the extent to which this solution is beneficial.
In short, the reunification of debts can make sense on those occasions when you have several credits or active loans at the same time, and you want to pay a single installment with less interest.
Reunification of homeless debts
In case you do not own a home, you can make a reunification of debts without mortgage guarantee, or reunification of debts without housing.
In this case, the reunification of debts will be carried out through a personal loan.
The loan amount must cover the total amount of the applicant’s debts, in order to settle these debts and start paying a single fee, generally less high.
To request this reunification of debts, the entity will take as guarantee only the current assets of the applicant, that is, a study of the applicant’s economy, including its savings, monthly income and fixed expenses, will be carried out in order to verify that the interested party You can pay off the debt reunification loan.
That is why the conditions of a debt reunification depend on a variety of factors.
A financial entity evaluates, among others, the applicant’s economic status, which determines the borrower’s ability to repay his debt.
We must bear in mind that, when requesting a loan to deal with our debts, we will have to assume the payment of high interest and associated commissions, according to the conditions of your new loan.
As for where to request your reunification of debts without housing, the best idea is to make the request with the company with which you have contracted most of your loans.
In case of having outstanding debts with several financial entities, it is recommended to request a capital increase in the entity with which we have contracted a larger debt, with which we can deal with the rest of the smaller debts.
A third option is private equity entities, which offer debt reunification loans as long as they do not exceed a certain amount, which generally is not very high.
Currently, there are companies specialized in debt reunification loans, called mediators, which are responsible for the process of the reunification of loans and mortgages with different banks.
Reunification of debts with mortgage
The reunification of debt with mortgage guarantee is one of the most used options in the Spanish credit market, since it allows the unification of loans of an individual in a simple way.
In this case, the reunification of debts will be carried out by a rehipotecation of the property owned by the applicant, or an extension of the current mortgage.
This process consists in the request of a new mortgage to an entity, obtaining an amount of money that will allow the payment of the rest of debts contracted by the applicant.
In this way, the applicant presents his home as a guarantee of payment, so it is very simple that the reunification of debts is granted.
Something important to keep in mind is that, to hire a mortgage debt reunification, the home must be free of charge and without prior mortgage.
If you have previously contracted a mortgage, at least 80% of the amount of the mortgage must have been paid prior to the request for debt reunification
Expenses associated with this option
We must bear in mind that this financing option requires the application of a new mortgage, with all the expenses that this entails.
Therefore, it is necessary to calculate the final cost of the reunification of debts prior to your request, since it is possible that, adding these expenses, a reunification of debts with mortgage is less profitable:
- I would notice
- Property registration
- Derivative Taxes
- Home insurance
Reunification of debts without collateral
In many occasions, when hiring a reunification of debts they ask us to present a guarantee, that is, a valuable asset that supports the payment, or a guarantor.
A guarantor is a third person who presents his assets and income as collateral for the loan payment of the applicant.
The guarantor shares the obligations of the borrower himself, and must pay the loan in case the debtor is not able to meet the same.
However, if we do not have a third party to guarantee us, we continue to have the opportunity to request a reunification of debts through a guarantee, a valuable asset in our name, such as a vehicle or a dwelling that they exercise as a guarantee of our payment.
Beyond these options, some entities offer the reunification of debts without collateral, so you should not present any of your assets as a guarantee of payment, nor will it be necessary to have a third person.
On these occasions, the reunification of debts is carried out through a personal guarantee loan, as long as the applicant has the necessary regular income and it is a not very high amount.
A reunification of debts without collateral is a good option for those people who, having regular income, have several loans or credits of small amount active, or with few remaining fees.
In this way it is possible to achieve a reunification of debts without putting at risk the most valuable assets, such as a home or family vehicle.
Debt Reunification – Simulator
You are thinking of reunifying your debts and need more information such as the monthly installment to pay, interest, etc.
There is a tool, a simulator that lets you know everything you need and in a very easy way!
You just have to enter the corresponding data and it gives you a simulation of the reunification of your debts. Thus, you can know in advance the monthly fee and the interest payable.
Reunification of debts without mortgage and without guarantee
If you want to reunify your debts in a single loan without mortgaging your home, and you do not have a third party that guarantees you in the application of the new loan, the solution is to reunify your debts with a personal guarantee loan.
In the case of a reunification of debts without a mortgage and without collateral, the only thing you will need is to have a regular income and an amount of savings that allows the entity to be sure that you can face the loan payment.
On the other hand, there are private companies that provide loans for debt reunification using as collateral other material goods, such as vehicles and jewels of high value.
We must bear in mind that, without a mortgage and without a guarantee, we will have a very limited probability of financing, and the reunification of debts would only be granted if the amount of the debts is not high.
Debt reunification with credit institutions
In the event that the interested party is listed in a delinquency record, such as credit institutions, the possibilities of making a reunification of debts are minimal, although existing.
In this situation, the applicant must resort to a private equity company, since traditional banks do not offer the option to reunify debts to users registered in a non-payment list or with debts to third parties.
Many private entities offer, for example, a debt reunification loan with credit institutions when presenting a vehicle as collateral, being possible to continue driving with it.
Naturally, the conditions of a reunification of debts with credit institutions will be much tougher, and will involve very high interest.
That is why it is necessary to calculate, in the first place, the total amount to be paid with the reunification of debts with credit institutions, taking into account interests, commissions and associated services.
In this way, we will avoid paying more than we already had before.
Before requesting a debt reunification with a private equity company, you must ensure that you know all the conditions, as well as the total to be paid.
Many of these private equity companies, especially online, are not regulated by the Bank of Spain, so we must take special care when going to them.
If your debt with credit institutions is not very high, you can compare the conditions and then apply for a loan with credit institutions.
Debt reunification with credit institutions without property
As we have mentioned in the previous section, there is the possibility of requesting a reunification of debts by being registered in the register of delinquent credit institutions with a harsher conditions and paying high interest.
In the case of wanting to make a reunification of debts with credit institutions without property, what you will need is to have regular income and have savings to justify the lender that you have money to pay the loan.
There are private companies that offer loans with credit institutions without property using as collateral property that you own, such as a vehicle.
Keep in mind that being in credit institutions and without property, the reunification of debts will be granted in case the debt is not high.
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Expenses associated with the reunification of debts
The reunification of debts can carry associated large amount of expenses and additional commissions, which is important to know in advance:
- Commissions for prepayment : the reunification of debts consists in the early cancellation of your loans and debts, with the aim of paying a single fee. Because of this, you may have to pay commissions for the advance payment of your loans.
- Opening commissions: some private entities charge opening and administration commissions after contracting a debt reunification. However, conventional banks do not usually charge fees in this regard.
- Study commissions: in case of reunifying the debts by means of a loan with personal guarantee, you will have to pay the study commissions derived from the analysis and evaluation of your economic profile, expenses and income.
- Expenses derived from the mortgage: as we have commented previously, if we opt for a mortgage reunification, we will have to face the payment of a large amount of expenses derived from it, such as agency, notary and registration.
- Insurance: in the case of mortgage reunification, entities usually require the contracting of home insurance that covers, at least, natural disasters and fires. In the case of a personal loan, it is usually a requirement to take out life insurance to have a guarantee in case of non-payment upon the death of the applicant.
Conditions associated with the reunification of debts
Debt reunification can be defined as the act of replacing several existing debts with another in a single installment, under different conditions.
That is why one of the main conditions of debt reunification is that the applicant cannot choose to reunify some debts and others not.
Most banking entities will require the interested party to group all their debts under one payment.
In addition, in case you are interested in a mortgage debt reunification, the loan obtained may not exceed 80% of the value at which the property has been appraised.
In this way, entities keep a much more reliable payment guarantee.
On the Internet there are several companies that offer the possibility of carrying out the debt reunification operation through their services. These mediating companies are in charge of negotiating with the banking entities so that you get the best possible conditions.
In addition, they organize the cancellation of your existing loans and credits, processing all the necessary paperwork related to the financial operation.
To get the best conditions and a longer repayment period, it is necessary that you cancel your other debts and have a mortgage or a good to mortgage.
Advantages of debt reunification
Reuniting your loans can prove to be a great relief for your personal finances.
With the reunification of debts you can get to pay much less for all your joint debts since there is a possibility that the interests are lower.
You can reduce the monthly fee significantly so that it is up to 80% lower than the monthly fee you were paying before.
In addition, debt reunification allows you the best flexibility:
- You decide what the maximum return period will be.
- You manage the depreciation yourself as you want.
- You can make partial or total amortizations.
- You don’t have to do anything on your own, the reunification company takes care.
In case you experience an improvement in your economic situation, it is possible to amortize in advance, thus eliminating some fees.
The reunification agency takes care of everything from negotiating with the entities with which you have your existing loans to managing all the necessary paperwork so that everything is in order.
Disadvantages of debt reunification
The advantages of debt reunification are obvious. However, not all benefits.
Next, I will tell you why debt reunification may not be the most profitable option for you.
Increase of the return period
A disadvantage of the reunification of debts is that it will extend the duration of your new loan, as the fees are much less high.
When the time of the return increases, the interest may also increase by being accounted for longer.
Therefore, although you will pay lower monthly fees with a reunification of debts, if you do not inform yourself properly you can end up paying more interest due to the extensive repayment term.
Additional costs and expenses
Gathering or restructuring your debts has additional associated costs, for example, cancellation fees for your existing loans and penalties for prepayment.
Keep in mind that there are financial institutions that allow you to repay your loan early without charging fees for prepayment.
Reunification of your mortgage
In the same way that some entities may charge additional costs for canceling your obligations in advance, they will also charge you something extra for the modification or cancellation of your mortgage loan, there are even associated expenses for opening another mortgage.
When you reunify your mortgage, the cost goes off and you could be adding a high percentage to the amount you already owe.
After reading this page you know that:
- Gathering your debts into a single loan allows you to obtain a large reduction in monthly payments.
- With the reunification of debts you end up paying a single fee lower than the total sum of all your other debts.
- You don’t have to do anything on your own, the reunification agency takes care of everything.
- A drawback of debt reunification is that it will extend the duration of your new loan.
- Reunification of debts entails a large amount of associated costs, especially a reunification of debts with mortgage guarantee.