Choose between refinancing and rescheduling your debts!
No one is safe from having problems with their personal finances. Sometimes an emergency means that we cannot fulfill our responsibilities on time. But not paying is not a luxury we can afford with bank debts.
Fortunately, the bank is aware of these “unforeseen events” and offers us two options that, even those without emergencies, can take advantage of. Refinancing and reprogramming are two alternatives that can help us out of trouble, learn more about them.
What is better to refinance or reschedule?
The ideal is to reschedule, although of course not everyone has the facility to opt for this alternative. The advantage of reprogramming is that you do not damage your credit history upon request. Even if you know how to negotiate, you could ask the bank to reduce the interest rate a bit.
Unlike reprogramming, refinancing does damage your credit history and, upon request, you will begin to be seen as a customer with potential problems (CPP). Nothing good if you want to take out loans in a short time!
It all depends on the moment
Sometimes the financial moment we are in will help us decide on one or the other option. Ideally, if the due date of our monthly payment has not passed we approach the bank to request a rescheduling.
I give you a simple example: if we have a payment limit on July 30, a debt that we must pay until December 30, when rescheduling the payment will no longer be July 30, but August 30 and the installments will be extended until January 30.
If the payment date has already passed its limit, what we have to do is ask to refinance the debt . When requesting this process you will be re-evaluated by the bank to know if you are fit for it. I advise you that if you are going to refinance go with a plan up your sleeve. This will let the bank know that your situation is temporary and that you will soon be the good payer as always.
Appeals to reprogramming rather than to refinance. That way you won’t damage your credit history or pay higher interest on your debt. If you have many debts and do not register any delays, I advise you to consolidate debts.