Monthly Archive: September 2010

Is There A Solution For The High Debt ?

In the past two years, Spain has experienced a cyclical change with respect to the financial system and especially concerning the mortgage. We have thus seen that the borrowing family has become oppressive, as the level of financial expenditure has reduced the budget, so we find that the revenues no longer cover our total financial liability. This is because the value of the house every year has increased, allowing more loans could apply either to reform the house, buy car or vacation destination. When the Euribor began its climb upward, the fees were increased in a high percentage, significantly affecting the solvency of the families. How can we solve this situation? First, negotiate with the bank through a notation or supererogation of the mortgage, increasing the amortization period or improving the conditions of the loan. Another tool to use is the foreclosure moratorium from ICO, aimed at those who are unemployed, allowing differ 500 euros monthly mortgage payment. We may also make use of a total restructuring of all our debts: the short and long term. The idea is to form a new mortgage, canceling all previous loans and pay one fee.

If we increase the repayment period and become short-term debt with high interest long-term debt with mortgage interest, indexed to Euribor, which is currently less than 1.90% per year, will achieve a substantial reduction in the monthly fee. Advantages and disadvantages of doing a reunification of debts, but we believe that in these times of crisis, the most important thing is to ensure our home and we can comfortably meet our financial commitments. To delve into these topics, visit our website. Roquett Edgar’s financial advisor, providing solutions to those families who are heavily indebted. Visit their website: