Dealing with personal finances is usually a difficulty for many people. After all, how do you manage your budget correctly so that it can pay more at the end of the month?
Financing a car or home is a great alternative as it allows you to realize a dream without compromising your pocket immediately. It is possible to plan and pay them on time. However, you still have to pay them off to keep your bills up to date, right?
In this sense, the transfer of finance ownership tends to be a great way out. If you want to know how it works and how it is done, keep reading the text!
Why make the transfer of financing title?
Imagine the following situation: You buy a new car and finance from the value on your behalf. However, some time later, some unforeseen events happen and for these reasons you have a hard time repaying your debt. What can you, as the holder of this operation, do?
The transfer of title is an option not to bear the damage that defaults on slips, for example, can cause. In addition to interest, you may be negative and have other problems of this kind. Transferring is a way to keep dealing with your appointments on time and not suffer from those concerns.
How to make the transfer of financing title?
First, you need to notify the lender. The bank or lender who made the loan will make an assessment of the new borrower to see if he can actually take on the debt. For this, the registration data and the guarantees it has will be analyzed.
After that, some rules will be agreed with the institution in question. It is common for the transfer of an individual to be allowed only to another individual only. Another recurring practice is to maintain the same terms with respect to payment.
It is worth noting that those who have the credit are not required to accept this exchange. In such cases, it is recommended to look for a new bank or financial organization and try debt portability for lower interest rates. Another alternative is to look for refinancing.
What are the advantages and disadvantages of making the transfer?
The main advantage is to get better installment repayment terms if you keep paying the new borrower the loan. If you funded a property but decided to buy another, the transfer also comes in handy.
The negative points are the high fees may be charged to effect the process. Changing ownership can be more expensive than you think and the idea is to save resources, isn’t it?
There are also those who bet on a practice commonly called “drawer contract”, which consists of an informal document signed between the parties, but without taking into account the permission of the lender.
People from this to escape what is charged to make the transfer of title finance. This is not recommended because it can generate even more debt for you by putting your properties at risk.
If you liked the text, be sure to read these 4 tips to make your money pay more!
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