Can I apply for loans to cancel debts
What is a loan for debt cancellation?
Debt cancellation loans are especially indicated for that purpose. It is more common than you think to accumulate several debts with different entities and then have problems to settle them all. Therefore, these loans, which are specifically intended for that, maybe the solution to your spiral of financial indebtedness.
This financial product stands out for being a personal loan that is adjusted so that the payment of the installments is much tighter than that of other financial products with a fixed or variable rate.
A unit of measure created by the 2016 to encourage the contracting of mortgage loans and curb the effect of inflation on prices.
The main feature of this adjustment index is that it makes the fees much more accessible than applying the traditional rate (fixed or variable). The fees are much smaller, so the applicant benefits from a larger amount paid in a more affordable way.
The difference between applying a UVA or a traditional rate can be from 7.9% to 29% in the worst case, while in a traditional loan applying the variable or fixed rate it can range from 37% to 42%.
How do debt cancellation loans work?
Debt cancellation loans, another report, allow you the possibility of obtaining a sufficient amount for the cancellation of all your debts.
1- First the loan is requested for the purpose of cancellation of debts.
2- Once approved indicate what debts you want to cancel
3- Present the CBU (Uniform Bank Code) of the entities with which you have contracted the debts.
4- Payment is made by bank transfer or check
5- If there is still money of the requested amount it is deposited in the bank account of the client
6- You proceed to pay your loan with the application of UVA rates
Advantages and risks of debt cancellation loans
Some of the advantages of this product to cancel debts are
Freedom to allocate it to whatever you want. There are people who do not use it only for debt cancellation but also to make their house renovation, buy a car, take a trip etc.
Possibility of canceling your debts at once and staying calm.
Obtain advantages when calculating fees using UVA.
Obtain financing with Veraz even if you don’t have a good credit history.
Regarding the risks of borrowing for debt cancellation:
Asking for a loan to pay off another can put you in a spiral of indebtedness if you consider that you will not be able to repay it, do not ask for more loans, even if they are to cancel the other debts. Be aware of your debt capacity.
Asking for a loan to cancel debts can aggravate your financial situation by lowering your score with Veraz if you do not meet all payments on time. So it can be counterproductive. If you apply for a new loan, try to be responsible for your obligations as a debtor.
Requirements to request debt cancellation loans
To request a debt cancellation loan, you must take into account a series of requirements that you must meet :
Be of age
Have a bank account
Have minimum income that allows you to face the payment of fees
Be a resident in Argentina
Provide a telephone number to be located