Mobile line, electricity, gas supply, technology device financing contracts. Are we really aware of how many payments we have to face monthly and with how many different companies?
In addition to these invoices, there are a large number of people who for some months do not manage to make all these payments since they also have to face their debts with the banks.
You can apply loan to pay other debts
It is not advisable to apply for a loan with debt to pay other debts since this makes us get into a vicious cycle of debt from which it is difficult to get out. However, sometimes we have no choice but to resort to this type of solution to be able to face those more unexpected bills and not accumulate large debts.
Expenses such as paying a semester from college, buying a new appliance, buying a car, subsidizing a wedding, or simply paying the bill for our past vacation, maybe extra expenses that require this type of loan to pay debts so that they do not end up being large outstanding debts.
If this type of financing is not done responsibly, it can carry certain risks. It could be the case of over-indebtedness or reaching a point where the figures of how much is really owed and to whom are not clear. In this way, real difficulties can arise when it comes to returning the money, eventually becoming a debtor.
The creditors of these debts can exercise their right to claim and include their client as a defaulter in some of the most important databases that exist in Spain such as Financial Credit Institutions.
But, can you apply for a loan if you are on one of these lists?
This is the typical question that one asks when one sets out to seek financing and is told that he has been registered in a list of debtors.
The link to one of these files marks us as a non-pleasant person for any bank and makes it impossible to resort to an entity of this type in case you need another credit.
In short, today getting a loan with a bank when you have already acquired a debt with another entity or private company is really complicated.
Banks carefully analyze the monetary situation of potential clients to guarantee their solvency and are increasingly demanding when approving a financial operation.
The banking entity studies the salary, the job stability, the patrimony, the family situation, the inclusion in some list of defaulters or if they have previously granted credits. All these variables are analyzed and taken into account.
The bank studies the expenses and income and checks whether or not it can grant that loan to pay debts and, if possible, under what conditions.
With increasingly prohibitive requirements, banks are slowing down a large number of people who really need money.
Not only debtors, who have been registered on the much-feared lists of defaulters, but also those who do not have a permanent job or those who do not have a minimum monthly salary.
Microcredit as a solution for defaulters
Loans to pay debts have a large number of advantages that make them a very attractive option for financing for people who have already contracted other debts. By not asking for guarantees or payrolls, they make them an ideal option for those who are on a list of defaulters.
It is very easy to understand why the success of this new modality in terms of personal loans is concerned: they are fast, easy and transparent.
These entities hardly ask for documentation from clients and it is really easy to access one of these quick loans.
In most cases its management is processed online or by phone, the company requests the DNI and an account number where to make the deposit and in a short time the money can be made available, without the need to present any type of document such as a payroll or a guarantee.
However, before applying for quick credit, it is essential to study the market. Currently, there are a large number of companies of this type and choosing loans offered by efficient financial services is important to obtain total clarity in the costs of an offer.
It is advisable to use a search engine that shows which are the entities that grant credits and select the cheapest offers on the current market until you find the one that best suits each need.
Microloans to correct other debts
As a starting point, it is not a very good idea to ask for a loan to pay another because in reality what you are doing is paying double commissions. However, there may be cases in which it is convenient to request a loan for this purpose.
Doing this is an alternative to turn to only in truly exceptional cases. When you can’t cope with debt, taking out a small loan to pay off debts or applying for quick credit could be a good solution.
Despite paying more and over a longer period of time, the debt is faced momentarily and time is paid for its repayment. In these cases it could be a good alternative way to settle it and avoid being included in one of these lists of defaulters, especially if it is a relatively small amount.
There are people who have to do it out of necessity, although this is something that must be studied very well before making the final decision. Today it is more frequent than we think to have to request a loan to pay another one.
Debtor status can prevent access to many basic services such as getting a credit card, hiring a phone line, or a gas supply contract.