Loan to extinguish other loans and various debts or to extinguish a transfer of the fifth or a mortgage etc.
Apply for a loan to pay off another or loan to pay off another loan: what phenomenon do we refer to when we talk about a loan to pay off other pre-existing loans and various debts? For all those who do not “chew” the technical-financial language, we can say that every time any form of credit is requested and obtained which is instrumental to the extinction of a pre-existing debt, we are faced with what in jargon comes called as debt consolidation. We have already dealt with the latter with three distinct pages and to which we will refer at the end of the post those wishing to deepen the institute in question beyond the indication on how to calculate the new and single installment.
Financing to pay off other financing?
Why that question mark at the end of the sentence? Well, considering that we have already dealt with this matter, on this page we want to deepen an aspect that we have not studied in other pages: not all forms of credit to be subscribed and paid off are the same, so the need arises to indicate which form of credit we must use to extinguish another! For example, we have a mortgage, should we pay it off with a personal loan? Or viseversa? Ultimately, this post was created to identify which is the new form of credit to be turned on in relation to the old one that we want to extinguish. A hand in this sense will also give us this article that we recommend on debt repayment loans.
Mortgage to pay off another mortgage:
it could be the best solution, but only if the old residual mortgage has a large amount because otherwise, that is, in the presence of small-medium amounts, the expenses of another mortgage would make the operation not convenient. Mortgage to pay off a personal loan: a similar consideration must be made in this case too! It is inconvenient to pay off a personal loan through a mortgage because of the costs, however, it is the ideal solution for those who want particularly low and sustainable installments. Loan to extinguish the transfer of the fifth: the extinction of a transfer or even of the double fifth through the common personal loan is usually convenient because the average rates applied in the personal loan are lower than those of the transfer.
Loan to extinguish Lite Bank: or the former Lite Bank, now known as Capital Bank. Well, the repayment of the debts of Lite Bank and tax in general depends on the sum: for large sums a mortgage is convenient, for smaller sums a (personal) loan. Revolving card debt settlement: we talk about the installments deriving from purchases made by credit card. For these, a personal loan will do.
Financing to pay off multiple debts:
this is the last hypothesis which, if well known, uses the singular for the word “financing” and the plural for that “debts”. This is the hypothesis that occurs most often, that is, when with a new and single loan, we want to extinguish more pre-existing loans. In this case, let’s talk about the classic financial scheme in which in the face of older installments we will create one and single.
The installments to be unified can be of the most disparate: for example, we can combine an installment of a loan aimed at a personal one or with an assignment and again with that of a credit card etc. Not only that: we can also request additional liquidity, always to be paid with the new and unique installment. Also in this case we have to look at the total sum of all the installments subject to extinction and determine how to proceed: with a mortgage for high figures, with a loan with medium-high figures. Below are the detailed links and the calculation utility: loans for debt consolidation, loans for debt consolidation and debt restructuring for private individuals.