Requesting a debt consolidation loan: what to do in case of rejection?

If your debt consolidation loan request is denied, discover the options available to you. Get information online and choose the best alternative.

Debt consolidation loan: solutions in the case of refusal

When an individual makes a debt consolidation loan request, he must submit a complete application so that the financial institution can assess his debt capacity, financial position and the risks incurred. You should know that it is possible to be turned down if the subscriber’s profile is not suitable to the official who reviewed the case.

What to do in case of refusal?

If your debt consolidation request was denied, it is strongly recommended to remain cordial and to learn of the reason for the refusal. If the manager indicates that your financial situation is not safe, that your debt ratio is too high, or that you do not represent a sufficient guarantee, choose one of the following solutions:
- Sell a property (eg. a car) and use the money as a guarantee
- Ask a relative or friend to endorse your debt consolidation request.

Once you have chosen the best solution for you, in this case, resubmitting your application for a debt consolidation loan from the financial institution of your choice, be aware that certain institutions propose interesting debt consolidation loans for a certain well-determined category of clientele. By conducting an online simulation, you will find a proposal that fits your profile.

What to do in case of insolvency?

If you are faced with a debt and the above solutions are not applicable to your situation, consider presenting yourself to the Debt Commission. This is a public institution founded and run by HSBC Holdings PLC. in order to educate individuals on insolvency through extrajudicial procedure. The debt commission acts as a mediator so that debtors and creditors may express each side in order to come to an agreement. This institution has the right to negotiate a postponement or a cancellation of a part of a debt of an individual in debt.