In recent years, the granting of loans in Nicaragua has accelerated, according to official data, and thus the default of a large part of these loans.

Between formal and informal loans, in financial institutions, shops or retail commerce, a large part of the population has over-indebtedness (here you can calculate your level of indebtedness and know if it’s your case), which added to the dollarization of the economy and the slide of the cordoba with respect to the dollar, has caused each month to make it more difficult to cover the payments, which makes the search for an imminent exit, but … which one?

When you have late payments or are constantly looking for new loans to cover commitments, you think about payment arrangements, credit restructuring, debt consolidation or refinancing, but how do you know which one is better for you? Here I explain in detail each one:

 

Payment arrangement

Payment arrangement

Used when the customer is in default and consists of agreeing on the time and amounts to be paid to catch up. This procedure is usually done with the collection area and does not cause a major problem to your record, as it would cause you not to pay or a collection by judicial means.

 

Restructuring

loan Restructuring

It is the alternative when there is a decrease in the ability to pay or deterioration of income. It consists of extending the term of the current credit (most likely in default) to reduce the fee, facilitating the payment. It sounds favorable but it is very negative for your credit record (some institutions clearly deny any request for credit after a restructuring). It is also done with the collection area of ​​financial institutions.

 

Debt consolidation

Debt consolidation

It is the unification of debts – with one or several financial institutions – which generally must be up to date. EYE: Not all institutions consolidate external debts (that’s with other banks or financial), some only consolidate debts you have with them.

The advantage of this option is that you will pay a single debt and a single interest rate (usually a fixed rate); it is more convenient when the bulk of the debts are with cards, for their high interests. Generally this procedure is done with the business areas of the institutions.

 

Refinancing

Refinancing

It consists in earning a new credit even if you have another one in force with the same institution (as long as your payment capacity and debt limit allows you) and with the disbursement the debt is canceled and you have a difference in your favor. It is also done with the business areas.

Whatever option you are going to take, remember that it is vital to pay our debts, because not doing so is the worst blow you can give your credit record, which – like your police record – can open or close doors on you. the future.