You borrowed, but your debt was quite reasonable given your income. But, you have suffered a decline in income and you have trouble balancing your finances because your debts have accumulated.
Know that if your income does not reach a sufficient level again, you can solve your problem by applying for a credit for debt consolidation. debt consolidation is an operation in which you are given a new loan so that you can pay off all your debts and start on a sound financial basis.
Thus, if you have a car loan for which you have to repay another € 5,500, a bank overdraft amounting to € 1,800, a personal loan for which you still have to repay € 1,700 and late payments totaling 3,000 €, your needs total € 12,000. In this case, know that you can find a healthy cash with a loan of 12 000 €.
If you choose a term of five years for this loan and if its overall effective rate is 9.9%, your future monthly payments will amount to 252 €. Therefore, if you rent your home and your monthly rent is € 600, your total debt would be € 852 per month after the implementation of your debt consolidation loan. This credit could therefore be granted if your income is at least equal to € 2,566 per month.
But it is essential to ensure that your monthly debt remains less than a third of your income after the implementation of your new credit. As a result, you may need to look for an apartment with a lower rent.
In order to know in advance if your application is likely to be accepted, it is interesting that you calculate the amount of credit you need. As a result, you should visit a website where you will find a calculator to simulate your future monthly payments.
Once you have made your calculations, you will have to prepare your debt consolidation loan application. In particular, you must make copies of all documents that attest to the amount of your monthly income. In addition, credit institutions will ask you for copies of the documents showing the monthly payments and the remaining capital due for the loans that you have not finished repaying. Finally, you will also need to provide copies of your ID card, your last quarter’s bank statements, and your home occupation title. If you are an employee, you may also be asked for a copy of your employment contract.