Debt consolidation: characteristics, advantages and disadvantages

Astro Finance debt consolidation: characteristics

Astro Finance debt consolidation: characteristics

The main feature of a debt consolidation loan is the fact that, thanks to it, you can put together in a single monthly installment the repayment amounts of the old loans you are still paying.

In other words, if you are struggling with returning old loans, with debt consolidation you no longer need to pay more than one installment per month. Instead, you can immediately pay off any debt thanks to the amount of money that is given to you by the agency. A sum of money that includes – in order – also the possibility of obtaining new liquidity and, by extending the repayment period, to have an appropriate rate with your return capacity.

With the consolidation of Astro Finance debts, you can request a loan ranging from a minimum of $ 3,000 up to a maximum of $ 40,000. You also have the option to repay the loan in 24 months or choose to extend it up to 7 years (or 84 monthly installments). Being a loan to restructure the debt, generally it is decided to have long repayment periods.

The interest rates applied are fixed and their value is established on a case by case basis. For the consolidation of the Unika Astro Finance debts, it includes (costs included) a maximum TAN of 10.40% and a maximum APR of 16.91%.

Requirements

Those who have reached the age of majority but are not over 77 years of age can apply for funding. The loan is aimed at employees with permanent contracts or temporary, self-employed and the pensionat.

Obviously, before granting financing for debt consolidation, Astro Finance needs to ascertain your income situation. Moreover, to avoid running the risk of insolvency, it will also take your financial reputation into consideration. Therefore, if you have had problems with deadlines, if you have been reported as a bad payer or if you have received protests or foreclosures, Astro Finance can deny you access to the amount of money you need.

As required

To apply for a Astro Finance debt consolidation you can choose to go to the branch personally (by first making an appointment directly from the site), or start the online application. In this case, all you have to do is fill out the form with your personal data and communicate to Astro Finance what is the amount you want to request. At this stage, remember to keep the following documents handy:

  • a copy of your ID card;
  • the tax code;
  • a copy of the pay slip (or the CUD;
  • the pension slip or the tax return, as appropriate) and your IBAN code.

Opening and loan management costs

Opening and loan management costs

Astro Finance applies costs related to preliminary investigation fees, which change according to the amount of the loan, in any case these do not exceed $ 275.00. Then there is the stamp duty equal to $ 16.00, the installment costs that have a value of $ 3.00, and finally the costs for the statement period, or $ 1.20 plus the tax stamp duty of $ 2.00.

Costs in the event of late payments

Costs in the event of late payments

The delay in monthly payment payments also entails additional costs. In the specific case, Astro Finance requests the payment of $ 15.00 extra for each unpaid expired installment, to which are added the default interest which is equal to 12% per annum.

Costs in the event of early repayment

Costs in the event of early repayment

We always hope to be able to pay off a loan early, and, as with any other loan, Astro Finance debt consolidation also envisages this possibility. In other words, you can pay off the loan at any time, or reimburse a part of it before the last expiry date.

However, there are costs to consider. For example, if the remaining installments are more than 12, Astro Finance is in fact entitled to a compensation equal to 1% of the amount repaid. For loans that have a residual duration of less than one year, the compensation is 0.5%.

However, there are cases where compensation is not due. In the specific case, no extra cost is paid when the amount paid for the reimbursement is equal to or less than $ 10,000 and covers the entire debt contract, or when an insurance contract has been signed.

You can find other information regarding costs and conditions, on the Astro Finance loan agreement.

Advantages

When it comes to debt consolidation it is clear that the main advantage is given by the possibility of rebalancing one’s economic and financial asset. If used correctly, it is a financial tool that avoids delinquencies that then generate other problems, ruining one’s financial reputation.

Disadvantages

Disadvantages

The concept of disadvantage (like the one of the above advantages) is of a generic nature, that is: if the offers are not evaluated well, there is a real risk of paying very high interest on the money taken.

In fact, having a single payment smaller than the total paid before unifying your debts does not necessarily mean having made a deal. It is always necessary to evaluate more offers and aim to seize the most advantageous one, the one that has the lowest costs overall.

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