December 9, 2019

Debt Consolidation or Debt Portfolio Purchase

When we take stock of our debts and finances, it can be easy to be overwhelmed by our debts. We see the debts of our credit cards and other credit debts, and we can feel that there is no hope that we will ever pay our creditors. Those who live with the debt burden often experience fear, anger, frustration and even depression. There are entire families who suffer the effects of a large debt, since worry causes loved ones to withdraw from each other. These problems are real, but consumers are lucky to have many options that make getting out of debt a real possibility. Purchase of portfolio and debt consolidation loans are an option that allows debtors to pay their consumption debt with unique and affordable monthly payments.

Debt consolidation loans or portfolio purchases involve combining several loans with high interest or debts into a single debt with a lower interest rate. Purchase of wallet works to simplify the life of the consumer by replacing several invoices with a lower monthly payment. For example, a consumer with four credit card bills can get a debt consolidation loan to pay all credit cards, resulting in a payment, instead of four.

How portfolio purchase works

How portfolio purchase works

The purchase of a portfolio is a line of credit that allows the transfer of an outstanding balance with a financial institution to another that offers better conditions. Generally the benefits of the purchase are in the interest or in the amount of installments of the new debt. There are several aspects that must be taken into account:

  • Interest rate
  • Debt installments or time

Benefits

Benefits

  • A single monthly payment: The fact that you have only one payment left means that you no longer have to worry about sending payments to several different banks and creditors. Having multiple payments increases your chances of forgetting to pay a creditor, and losing a payment can negatively affect your credit. It is much easier to pay a payment every month, and it is unlikely that you will forget to pay the portfolio purchase.
  • Lower interest rates: A bank that offers debt consolidation loans will generally charge a lower rate than what they charge on an initial loan. If this is the case, the debt consolidation loan will reduce interest payments and help eliminate credit card debt completely, for example. This releases more money each month that you can use for other expenses or to pay more for the capital of your loan.
  • Lower monthly payments: Consumers are generally offered the option of a longer reimbursement period, which will reduce monthly payments. That is, you no longer need to spend all the monthly income on the payment of the debt. This can be a great incentive to consolidate a debt.
  • Reduction of creditors’ pressure: Purchasing a wallet will help reduce or terminate the phone calls you receive from several creditors requesting payment of your debts, since from your perspective, the debt has been paid.

What type of debt is generally covered by a portfolio purchase? Most types of debt are eligible for consolidation, including credit card debt, consumer or mortgage loans. Consumers seeking to reduce their financial burden should prepare a list of current debts to calculate total debt. A trained credit counselor will effectively determine whether debt consolidation will be beneficial in each particular case. You can compare monthly payments with and without a portfolio purchase.

Debt consolidation and portfolio purchase is probably the most common solution for anyone thinking of getting out of debt. It is much better to consolidate loans than to continue paying many different creditors. Many people who follow this path, to pay many credits simultaneously, end up with more debts than they had to start.

Banks with lower portfolio purchase rates

Banks with lower portfolio purchase rates

The interest rate offered by banks for the purchase of a portfolio is one of the most important factors to consider when selecting the best option. The lower the rate they offer you, the better for your debts. A key factor in the portfolio purchase is that the rate offered is lower than that of current loans. It is important to note that not only the rate is important, it is vital to review the conditions under which the new bank will receive your debt.

From the point of view of banks, the purchase of portfolio is a mechanism to attract new customers, offering better conditions than a competitor. That is why more competitive interest rates are offered for a client to transfer their debt from one bank to another.

Bank EA rate from
Bancolombia 10.03%
Western Bank 14.98%
Bank of Bogota 11.08%
BBVA 17.50%
Davivienda 12.42%
Megamibank Colpatria 9.90%

Purchase of Bancolombia Portfolio

Bancolombia offers the product of debt consolidation by offering a lower interest rate with respect to free investment credit. Valid November 2019:

Purchase of Portfolio MV rate EA Rate
Free Investment Fixed Rate From 0.80% to 2.11% From 10.03% to 28.55%
Free Investment Variable Rate From 10.16% to 28.55%
Employee Libranza – Fixed Rate From 1.22% to 2.11% From 15.66% to 28.55%
Employee freedom – Variable Rate From 13.48% to 28.55%

 

Purchase of Megamibank Colpatria Wallet

It is perhaps one of the banks that makes the most portfolio purchase, you can apply for both your personal loans and your credit cards.

Benefits

  • No co-debtor
  • Free credit study.
  • Credit from $ 10 Million to $ 130 Million.
  • Term from 36 to 60 months.

The rates for the purchase of a wallet (November 2019) with a Colpatria credit card are:

Card MV rate EA Rate
Infinite Cards 0.79% 9.90%
Platinum, Black and Signature Cards 0.83% 10.43%
Gold Cards 1.05% 13.35%
Classic and Basic Cards 1.39% 18.02%

 

Once the portfolio purchase is requested, you can choose the term for the unification of debts between 12, 24, 36 up to 48 months. Debt unification is subject to the available quota you have with your credit card. You should only have at hand the card number of the other entity and the value of the debt to be unified.

In case you are interested in the unification of debts of a consumer credit, the MV rate will be 0.79%, equivalent to 9.90% EA

Purchase of Davivienda Portfolio

Benefits

  • Term up to 60 months.
  • No co-debtor
  • Does not generate charge for credit study
  • Term from 36 to 60 months.

The rates for the purchase of wallet (November 2019) with Davivienda credit card are:

Card MV rate EA Rate
Classic 1.20% 15.37%
Gold 1.10% 14.03%
Platinum 1.00% 12.68%
MasterCard Black and Siganture 0.98% 12.42%

Evaluating the different options to make a portfolio purchase is a good recommendation to have a single debt with a bank, instead of having several individual debts. Take advantage of the promotions and low rates that banks can offer to ease the outstanding debt installments. Saving on interest can help you get out of these debts faster.

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