Undoubtedly, one of the phenomena that most often increase debts is the level of expenditure and consumption of goods and services that we have. This is associated with and sustained by a rhythm of life that is increasingly accelerated and constantly changing.
The commitments or financial obligations, added to the payment of rent, public services, food and transportation among many other expenses are always present and the order of the day.
Coupled with this, economic factors such as inflation, substantial increases in the cost of living, rising fuel prices and a higher tax burden on businesses, businesses and individuals favor this upward trend.
On the other hand, and based on this reality, it is indisputable that the number of people who increase consumption with payment methods such as free-destination credits, credit cards or immediate cash loans, is growing.
Independent, we want to emphasize that the use of these mechanisms is not bad. On the contrary, they boost the economy despite difficult circumstances.
What is considered negative is the undue and excessive use of these payment systems, which, when not used correctly, translate not into relief, but into over-indebtedness, thus limiting the ability to contract new ones. commitments.
Taking into account these circumstances, the objective of this article is to provide you with valuable information that we know will be very useful to you.
What we want to share has to do with a method by which you can alleviate the burden of your financial obligations and that are increasingly difficult to pay.
This method of relief is about the purchase of a portfolio or, as it is also known in several countries, the purchase of debt by other financial entities.
Simple: the purpose of buying a debt from one institution to another lies in the need to recover that capital that was granted as a loan to a person holding the obligation.
And … what advantages does this offer to the person who owns the debt with the financial institution? simple: the advantage offered by this mechanism is that the debts are unified with a single entity at much lower interest rates.
As a result, you will have the opportunity to rethink your debts or make them easier to pay in the time periods of your choice and what suits you best.
On the other hand, not only will you notice a reduction in your monthly debt payments, but you can also start generating good reports in your credit history, which in the future will facilitate the granting of capital.
Another advantage is that the fees will have a fixed amount, so you will not have to worry about excessive and unexpected charges from the entity that owns your debt.
Easy: it does not matter if it is one or several commitments, the entities that carry out this type of transactions will be willing to acquire them, consolidating in a single commitment for you.
This means that not only will you experience a relief in your financial burden but you will also save time in negotiations that you can do online or for which you should understand with a single creditor institution.
Once you have clarity about everything previously mentioned, you must understand that this process results in the acquisition of a new credit (also known as financial obligation) with the new entity.
Added to the interests that are generally more favorable, the credit conditions as well as the new benefits that can be granted, will elevate the relief of your finances.
You can have a greater cash flow (cash) for your expenses, your tastes or to save capital that will allow you to get out of all your debts more quickly, generating a positive credit history.
Remember that maintaining an impeccable credit history translates into greater possibilities of fulfilling other goals and dreams that you have projected in the future.
The purchase and / or sale of portfolio or debt, also involves a thorough review by financial institutions to your credit history because they will determine how risky it is to buy or not your debt.
We will tell you the latter with the intention that under no circumstances should you stop paying your current obligations, because this could result in something very counterproductive to the objective of alleviating your finances and giving you financial peace of mind.
We also consider it pertinent to know that the entities have a cap for the purchase of debts depending on what is contained in your credit history and how risky you are as a debtor based on your payment behavior.
Summarizing a bit of the above, the purchase of portfolio or debt is a mechanism that is made depending on the request you make to the entity with which you wish to continue paying your financial obligations for which you must inform yourself adequately.
A good alternative is to obtain information through the websites of these financial institutions, as well as in specialized web portals; that in view of the figures of your debts and credit profile will guide you on which entities it is preferable to go.
Finally, you should avoid over-indebtedness at all costs while you are in the process of canceling your outstanding obligations, as well as avoid purchasing new portfolios of financial products and / or insurance.
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