Want to sell your bank debt to another institution? These are the interest rates and terms offered by some banks.
Although the average consumer loan rate has fallen by nearly 11.5 percentage points to 17.9 percent effective annual rate, from one of its highest levels observed on January 20, 2023, the possibility of finding a lower offer that allows you to get out of those debts for which you still pay a high cost is increasing , something that will undoubtedly help you ease your finances.
Most banking institutions operating in the country are on the hunt for these high-paying debtors, seeking to buy their consumer loans—including credit card portfolios—as well as their unsecured investments, vehicle loans, revolving loans, and mortgage loans, offering them rates as low as 10 percent effective annual percentage rate for certain types of loans, such as payroll debit cards, for example.
The offer doesn't just include good interest rates. It also generally comes with lower monthly payments, extended terms, no maintenance fees, the ability to consolidate multiple loans into one, and other benefits, which personal finance experts recommend being carefully analyzed to ensure that the relief achieved on the one hand isn't lost with the cost of an expanded credit limit, a new credit card, or insurance that you may not need at the moment.
Selling a portfolio is generally a viable option when trying to ease the financial burden on your household or to put some order into your personal finances during difficult work and economic times like the current one.
The interest rate adjustment currently taking place in the market is a good opportunity to obtain substantial reductions in credit costs, of course, if a good negotiation is achieved.
As of the end of April, the average interest rate for joint loans was 17.9 percent, and for mortgage loans, it was 11.8 percent, according to the most recent statistics from the Financial Superintendency from early May of this year.
Before selling your loan, do your research, negotiate, and make sure you get the best possible terms, as this will save you money in the long run. But always keep in mind that while the interest rate is crucial in the settlement process, it's not the only thing you should consider.
Keep in mind that the institution you're selling your portfolio to will determine the interest rate they offer. Several factors are analyzed when determining the interest rate, such as whether you're employed or self-employed; your monthly income; your debt level; and your payment habits. Interest rates also vary depending on the type of loan you receive, as a payroll debit portfolio, which generally has a very low interest rate, will never be the same as a credit card or open-ended portfolio, which has a higher cost.
Keep in mind If you've already decided to sell your loan portfolio to another institution to improve your cash flow or organize your finances, consider the following points before taking the final step:
- Listen carefully to what the new institution is offering you and clear up any doubts you may have about it, so you won't be surprised when you start paying off the loan derived from the portfolio purchase.
- Make sure the new rate you're offered is lower than what you're paying for your current loan; don't just think about the new monthly payment.
- Analyze whether the portfolio purchase includes an increase in the value of the debt and assess whether you really need that additional money. If you're looking to relieve your cash flow, don't accept it.
- If you increase the term to lower your payment, keep in mind that it will take longer to pay off the debt. Also, keep in mind that a longer term will increase the cost of the debt.
- Avoid paying commission fees; portfolio sales should not incur any costs for the debtor under any circumstances.
- Verify that the guarantees on the new obligation are the same or lower. If possible, try not to commit new guarantees.
- Remember that the value of the portfolio purchase is transferred directly by the new entity to the establishment with which the debt was held.
- Avoid allowing the new entity to force you to take out other products such as insurance, credit cards, or new loans when purchasing a portfolio, as this could ultimately negate the cost and liquidity benefits you're seeking.
eltiempo
