There is no equal reduction percentage for all cases. The value of the new installment depends, among other factors, on the total debt amount, current credit rates, chosen term, new operation conditions, and the client's financial profile.

Therefore, a consolidation must be analyzed on a case-by-case basis.

How does the payment reduction work?

Imagine you have three credits:

Personal loan: 250 €/month
Car loan: 320 €/month
Credit cards: 180 €/month

Currently pays 750 € per month.

If a new operation allows combining these commitments into a single payment of 500 €, you would have a monthly reduction of 250 €.

Why can a consolidation lower the payment?

There are several factors that can contribute to a lower monthly payment.

1. One single credit

Instead of several installments, a new installment now exists.

2. New deadline

The new financing may have a different term than current credits.

The longer the term, under certain conditions, the lower the monthly payment, although this may increase the total cost.

3. New rate

The rate applied to the new loan may differ from the rates of current loans.

4. Debt restructuring

Consolidation can allow reorganizing different credits and charges into a single operation.

Lowering the payment means saving?

Not necessarily. This is probably the main question to raise before consolidating.

Imagine:

Before: 800 €/month
After: 550 €/month

First glance, a reduction of 250 € per month.

What should you compare?

Before accepting an offer, analyze:

• Current payment
• New payment
• Current term
• New term
• APR, EAR and TEC
• Fees
• Insurances
• Total debt amount
• Total amount to pay

The TAEG and MTIC are important indicators for comparing credit costs.

When does a consolidation make sense?

Poupança no Minuto can be considered when there are several credits and managing the different installments is weighing on the monthly budget. But the analysis should not only look for the smallest possible installment. The goal should be to find a balance between monthly payment, term, and total cost.

The result depends on the specific conditions of the operation.

Want to know if you can reduce your monthly costs? Do your simulation at Poupança no Minuto and discover the options that may be available for your situation. Get a free personalized analysis, no commitment required.

FAQ

How much can I save per month with a consolidated loan?

There is no fixed value. It depends on current credits and the conditions of the new operation.

Lower payment means the loan became cheaper?

Not necessarily. It's necessary to compare the total cost and the time.

Can I consolidate various types of credit?

Depending on the operation and the institution's conditions, it may be possible to combine different types of credit.

Should I choose the proposal with the lowest installment?

Not necessarily. The term and total cost are also essential.

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