Buying debt: know how to access it and if it should be done | YOUR MONEY

People with good credit behavior can access the purchase of debts by the financial entities, said financial coach Fabiola Luque.

“All financial entities have a record of our credit behavior; that is, if we have paid on time (the credits) or we are behind (in the payments). That generates a note for us and the better the note, the better we are seen in the financial system, “he explained.

This makes it more likely that other banks will offer to buy the debt, which is to transfer the debt from one bank to another; although there are also purchases of internal debts, he said.

“For example, a person has a credit card with a debt of S / 5,000 and another bank offers him an effective credit or personal loan for the same amount, but at a lower interest rate so that with that money he can pay on his all credit card debt. So you keep the new credit at a lower rate and that is a purchase of debt, “he said.

The purchase of debt is observed more in consumer loans, but now there is a lot of acquisition of mortgage debts because they are larger loans and banks carry out internal campaigns and strategies to capture those debts that people have in other banks, he said.

Thus (the entities) offer to acquire the mortgage debt at lower rates and that is convenient as long as the terms they provide are analyzed, since the term is usually the same and the lower rate so that it is convenient to sell the debt, he said.

Now it could happen that the term is longer, but in that case, no matter how much the interest rate is lower, you would end up paying more, this option being recommended for people who are too indebted, as they would have a longer term and lower fees, he said. .

Debt consolidation

In the acquisition of debt, the financial institution can buy several credits from a person, consolidating all the credits on a single debt with a lower interest rate.

“For example, a credit card debt and a personal loan are consolidated into one debt and at a lower rate,” he added.

This alternative is convenient because it is cheaper and allows a better order as it is a single loan, he said.

People should always analyze the proposals from their own financial institution and from other institutions to compare them, he said.

Finally, he mentioned that the purchase of debt also occurs in corporate loans, but with different parameters.

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