Day by day, we are hooked by the desire to possess material things, whether watching commercials on television, spectacular that promote the new in technology, dressers presenting new trends in fashion, etc.

But buying and making expenses without measure can lead you to incur debts that break the balance of your finances.

You mustn’t be tied to debts since with this, and you can damage your credit history or even lose your assets.

But no matter what the picture, the important thing is to want to stop the increase in debts and achieve stability in your finances.

Debt consolidation or payday loan consolidationis one way you can reduce your current debts. Although there is no commitment or obligation on the part of the institutions to carry out this practice, the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF) reminds you that there is also no legal basis for you as a user, you are obliged to accept such agreements.

We explain how it works: this procedure consists of approaching the bank that offers you better payment terms, and that manages to settle the debts that you acquired in other institutions. This allows you to have only one liability with a single Financial Institution.

Currently, we see in various media the propaganda of different Financial Institutions promoting that you transfer your debts with them, but what do you gain with this?

This procedure gathers what were previously several debts in a single monthly payment, and its main feature is to help you reduce the expenses you currently have on different cards and manage them in a better way so that at the time of managing your money, it is less complicated. If you opt for debt consolidation, keep in mind that although the payment you have to make each month maybe less, the term to pay off the debt completely may extend.

There are currently several Financial Institutions that have this type of program; In the case of credit cards and depending on the bank, they are the characteristics and benefits that they can offer you, among the most common are:

They accept the transfer of other debts in the bank and departmental cards.

The minimum amount they allocate usually depends on the client since there are banks that often send an invitation only to people they consider eligible for this program.

The Financial Institution usually assigns the line of credit they offer.

There are terms from 6 to 48 months, although there is a possibility that it is open.

If you are already thinking about debt consolidation, here are the steps you should take to choose the best option:


  • It is easier to have control of a single credit card than three or seven, since you will not have to pay attention to many cut-off and payment dates, nor will you have to spend several annual commissions.
  • Before consolidating your debts into one, make sure that the interest rate is lower than those of your debts separately.
  • Remember that reducing your monthly payment will also increase the time you will have to settle it.
  • Making a budget is of the utmost importance, since this way you will know your ability to pay accurately.
  • Identify the expenses that you can do without; this will open a possibility of saving.
  • If you are interested, contact the Financial Institution directly to know the details, conditions and find out if you are a candidate to participate.
  • Make the negotiation directly with the Financial Institution of your interest, not through other companies.
  • Remember that having a good credit history is the key to being offered other credits, such as the mortgage.

We know that being in a bad financial situation clouds your view, so we recommend you to think with a cool head and consult the conditions offered by accredited Financial Institutions because there is never a lack of people who seek to take advantage of the despair of others, to make a profit of your own.


Leave a Reply

Your email address will not be published. Required fields are marked *