Although the name is suggestive, not everyone knows what debt transfer is and how to do it. So let’s look at how this alternative can get us out of bigger financial problems. Follow it.
What is debt transfer
When we are indebted, one of the options available to remedy such a situation is the transfer of debts. The debtor transfers the debt transferable to a third party.
An example of a transfer is the financing of vehicles and real estate, where the defaulter can pass his asset to another person in the transfer situation.
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The transfer takes place under the analysis and authorization of the creditor, who will evaluate the conditions of the person who will receive the debt, being subject to receive charges for the transfer.
When considering the amount of installments that have already been paid by the debtor, it is still possible that the debtor receives some reimbursement. However, depending on the default time, the payment may have covered interest only, consequently the repayment will not happen.
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Transfer of debts from one bank to another
Within this modality there is also the so-called portability of financing, an alternative very little publicized by the agencies and authorized since 2006 by the Central Bank.
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This option allows the transfer of debt from one bank to another in order to obtain better interest rates and financing conditions.
The portability of financing is a great help for the customer who wants to get out of abusive interest or get rid of poor service.
How to carry out the debt transfer
It should be noted that some financial and types of financing do not authorize the transfer. Therefore, it is necessary to apply at the institution.
Once the authorization is granted, the creditor will need the personal data of the new debtor so that he can make an assessment.
If the new debtor is able to pay the debt, payment of fees, signature of contracts and, finally, transfer of documents will be carried out.
For banks, the process is different, since the creditor’s authorization is not required. In this process, be aware of the CET (Total Effective Cost) that will determine the costs and benefits of the loan.
It is essential to emphasize that portability of financing is a right of all, and therefore, the bank should not hamper the transfer.
Finally, debt transfer becomes an ally when one notices the inability to afford debt or financing. Seek the financial and inform your need.
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