When we have problems paying a debt , we have different alternatives before falling into arrears. Did you know? Two of these options are to refinance and reprogram, and although they are sometimes confused, they are two different terms. Know the differences between refinancing and rescheduling the debt!
What is refinancing?
When you request to refinance a debt, your payment period can be extended allowing the amount of the installments to be reduced.
Not everything is rosy with refinancing and you have to keep in mind that this procedure damages your credit history . How? Well, from the moment you refinance your rating in the risk centers, such as Infocorp , go down – now you will be a customer with a potential problem ! -, which will make it difficult for you to get another loan in a short time.
Tips to refinance a debt
If you want to refinance, despite the problems it can bring to your credit history , I advise you to plan well what you will tell your bank advisor. Ideally, you should request refinancing when you have a plan that allows you to pay off your debt in a short time – a personal budget will be a great help! If you have a good track record after refinancing, you will not have problems getting new credits.
What is rescheduling a debt?
Reprogramming is different from refinancing. What you ask to reschedule is that the payment date of your next installment be delayed a bit. In other words: you change the current monthly payment date.
As it is not that you cannot deal with the payment in months, the interest rate you initially had will be maintained. In addition, your status will not change before the risk centers . You can not only change the payment date, but also the current amounts. For that you have to approach the bank to renegotiate the terms of your contract.
Is there any other option?
If you do not like the first option and the bank does not accept reprogramming , you have debt consolidation . Which is ideal if you have debts with different banks . With this service you unify your debt, which will allow you to reduce interest.
Another option, if you have a debt in dollars, but receive your salary in soles, is to change the currency of your debt, if the bank does not accept the change you can go to another financial institution to buy your debt.
Do you have problems with your debts? You have more than one option to avoid falling into arrears. Which one would you choose?