In this situation, an alternative is to reunify all your debts, that is, cancel all your existing loans early and contract only one, with a lower interest rate and the longer repayment term. Reunifying your loans will not only have the possibility of reducing what you pay each month by extending the term and reducing the average interest rate, but you will also be left with only one active credit and you will have better control over the repayment.


To make the reunification of your debts you have several options:

Unsecured personal loan

Unsecured personal loan

The most common option is to go to your main bank or the lender with whom you have the highest outstanding debt, request a new personal loan or expand the existing one, so that its amount is equal to the sum of all previous loans and with a longer repayment term. It is the option available both for employees, as for freelancers and pensioners. However, the advantages are lower and the amounts are usually reduced, since a guarantee that can guarantee reimbursement is not required.


Home equity loan

Home equity loan

There are some situations in which asking for an unsecured personal loan is not possible. Especially the people who have the most difficult access to the aforementioned products are those listed in the ASNEF delinquency lists.

An option to reunify your loans while in ASNEF is to contract a home equity loan. Home equity loans offer significant amounts to be repaid over a long term, but you will need to have some property on your property, free of charge, that will serve as a guarantee of payment and you will carry a risk of losing that property put as collateral if you do not reimburse the loan.


Dangers of loan reunification

loan reunification

In all cases, you should always keep in mind that the reunification of your existing debts increases the total debt, even if the payment of the reduced monthly fee is more comfortable. With a longer repayment period, the amount of interest you will have to pay, plus other possible additional costs, commissions or penalties for early cancellations, commissions for opening the new loan, etc. will also increase. That is, in total you will pay more.

If for any reason you choose the alternative for the reunification of debt with mortgage guarantee, where you put a property as the guarantee of repayment, you have to take into account that in case you will not be able to fulfill the loan repayment, there is a large risk of losing your property as a guarantee.

Unfortunately, it should be mentioned that there are fraudulent companies in the debt consolidation sector, taking the opportunity to deceive people in a difficult situation. Always be very careful when choosing the financial institution with which to contract the reunification loan. To avoid cheating and find the best offer that fits your situation, search and consult online the experiences of other customers and compare between different offers. You can use our loan comparator and choose from the offers of reliable and safe lenders.